Description

BSE announces list of securities being added to ESM framework and movement between ESM stages effective September 3, 2025

Summary

BSE has announced updates to the Enhanced Surveillance Measure (ESM) framework effective September 3, 2025. Five securities are being newly added to the ESM framework, while three existing ESM securities are being moved to higher stages, indicating increased surveillance. The ESM framework imposes trading restrictions and additional margin requirements on securities exhibiting abnormal price movements or other concerning characteristics.

Key Points

  • 5 new securities added to ESM framework: Gorani Industries Ltd, Northlink Fiscal and Capital Services Ltd, Permanent Magnets Ltd, Virat Industries Ltd, and Yash Chemex Ltd
  • 3 securities moved to higher ESM stages: Gratex Industries Ltd, Kesar Enterprises Ltd, and Sharma East India Hospitals & Medical Research Ltd
  • No securities moved to lower ESM stages
  • No securities exited the ESM framework
  • Changes effective from September 3, 2025

Regulatory Changes

The Enhanced Surveillance Measure framework is being updated with new additions and stage movements. Securities under ESM face progressively stricter trading restrictions based on their stage classification (Stage I through Stage IV), including:

  • Additional surveillance deposit requirements
  • Trading only in trade-for-trade segment
  • Periodic call auctions with no intraday trading
  • Additional margin requirements

Compliance Requirements

Trading members and investors must:

  • Apply appropriate ESM stage restrictions for affected securities from September 3, 2025
  • Ensure compliance with additional margin and deposit requirements
  • Follow trade-for-trade or periodic call auction mechanisms as applicable
  • Monitor client positions in ESM securities for risk management

Important Dates

  • September 3, 2025: All ESM changes become effective
  • Trading restrictions and stage movements apply from start of trading session

Impact Assessment

The placement of securities in ESM framework and movement to higher stages will significantly impact:

  • Liquidity: Reduced trading volumes due to restrictions
  • Price Discovery: Limited to periodic call auctions for higher stage securities
  • Investor Participation: Higher margin requirements may deter retail participation
  • Market Making: Restricted or eliminated for ESM securities
  • Risk Management: Enhanced monitoring required for positions in these securities

Impact Justification

ESM placement significantly restricts trading and impacts liquidity for affected securities