Description

BSE announces securities being added to ESM framework, securities moving between ESM stages, and the consolidated list of securities under enhanced surveillance.

Summary

BSE has announced changes to the Enhanced Surveillance Measure (ESM) framework effective September 3, 2025. Five new securities are being added to the ESM framework, three securities are moving to higher ESM stages indicating increased surveillance concerns, and no securities are moving out of the framework. The circular also provides a consolidated list of all securities currently under ESM with their respective stages.

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 moving to higher ESM stages: Gratex Industries Ltd, Kesar Enterprises Ltd, and Sharma East India Hospitals & Medical Research Ltd
  • No securities moving to lower ESM stages or exiting the framework
  • Total consolidated list contains over 27 securities across different ESM stages (I and II)
  • Framework includes both regular and SME securities

Regulatory Changes

The Enhanced Surveillance Measure framework continues to be applied to securities exhibiting abnormal trading patterns or other surveillance concerns. Securities are categorized into different stages (I and II) based on severity of surveillance parameters. Movement between stages indicates changing risk profiles of these securities.

Compliance Requirements

  • Trading members and investors must comply with enhanced margin requirements for ESM securities
  • Additional surveillance deposits may be required for trading in these securities
  • Price bands and circuit filters are applicable as per ESM stage requirements
  • Settlement obligations must be met on trade-for-trade basis for ESM securities
  • Brokers must ensure adequate risk management measures for clients trading in ESM securities

Important Dates

  • Effective Date: September 3, 2025
  • All changes to ESM framework including new additions and stage movements become applicable from this date

Impact Assessment

The ESM framework significantly impacts liquidity and trading volumes of affected securities. Securities under ESM face restricted trading conditions including trade-for-trade settlement, enhanced margin requirements, and periodic call auctions in higher stages. This affects both retail and institutional investors holding or planning to trade these securities. The movement of securities to higher ESM stages indicates deteriorating surveillance parameters, potentially signaling increased risk for investors.

Impact Justification

ESM framework imposes significant trading restrictions and enhanced surveillance on listed securities, directly affecting investor trading ability and liquidity