Description

BSE announces changes to Enhanced Surveillance Measure framework with securities moving in and out of ESM stages effective September 1, 2025.

Summary

BSE has announced updates to the Enhanced Surveillance Measure (ESM) framework effective September 1, 2025. The circular lists securities being newly added to ESM, those moving to higher ESM stages, and those being moved to lower ESM stages. A total of 4 securities are being newly added to ESM, 1 security is moving to a higher stage, and 51 securities are being moved to lower ESM stages.

Key Points

  • 4 securities newly shortlisted for Enhanced Surveillance Measure (ESM) framework
  • 1 security moving to higher ESM stage (Elango Industries Ltd)
  • 51 securities moving to lower ESM stages, indicating improved compliance
  • Changes effective from September 1, 2025
  • Framework includes different stages with varying surveillance intensity

Regulatory Changes

The ESM framework continues to be applied with periodic reviews and adjustments based on security-specific parameters and compliance metrics. Securities are moved between different ESM stages based on their trading behavior and compliance status.

Compliance Requirements

  • Listed companies under ESM framework must comply with enhanced disclosure requirements
  • Trading members need to ensure appropriate risk management for ESM securities
  • Additional margins and position limits apply to securities under ESM
  • Regular monitoring of trading patterns and volumes required

Important Dates

  • September 1, 2025: Effective date for all ESM framework changes
  • Securities will be subject to new ESM stages from market opening on this date

Impact Assessment

The movement of 51 securities to lower ESM stages indicates overall improvement in market compliance and trading behavior. However, 4 new securities entering ESM framework suggests ongoing surveillance needs. The framework helps maintain market integrity by closely monitoring securities with irregular trading patterns or compliance issues. Trading costs may be affected for securities moving between ESM stages due to different margin requirements.

Impact Justification

Affects trading parameters and margins for multiple listed securities under surveillance framework