Description

BSE updates Enhanced Surveillance Measure framework with securities moving in, out, and between stages effective September 8, 2025.

Summary

BSE has updated its Enhanced Surveillance Measure (ESM) framework effective September 8, 2025. The circular details securities being newly included, moved between different ESM stages, and those exiting the framework. ESM is a supervisory measure applied to securities exhibiting abnormal price movements or trading patterns.

Key Points

  • 6 securities newly shortlisted for ESM framework
  • 5 securities moved to higher ESM stages (stricter surveillance)
  • 15 securities moved to lower ESM stages (reduced surveillance)
  • 23 securities moving out of ESM framework completely
  • Changes effective from September 8, 2025
  • Framework includes both main board and SME securities

Regulatory Changes

The ESM framework operates in multiple stages with increasing levels of surveillance and trading restrictions. Securities can move between stages based on their trading behavior and compliance with disclosure requirements. The framework aims to protect investor interests by monitoring securities with unusual price or volume movements.

Compliance Requirements

  • Listed companies under ESM must ensure timely disclosures
  • Enhanced reporting requirements for companies in higher ESM stages
  • Trading members must be aware of ESM status for proper risk management
  • Investors should exercise caution when trading ESM securities

Important Dates

  • September 8, 2025: Effective date for all ESM framework changes
  • All securities listed will be subject to their respective ESM stage requirements from this date

Impact Assessment

Securities entering or moving to higher ESM stages will face increased scrutiny and potential trading restrictions, which may affect liquidity and investor sentiment. Securities exiting the framework will have normal trading restored, potentially improving market participation. The changes reflect BSE’s ongoing efforts to maintain market integrity and protect investors from volatile or manipulated securities.

Impact Justification

Regular ESM framework updates affecting multiple securities with trading restrictions