Description

BSE announces changes to Enhanced Surveillance Measure framework effective October 7, 2025, including 10 securities entering ESM, 1 moving to higher stage, and consolidated list of all securities under surveillance.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) framework effective October 7, 2025. Ten securities are being newly shortlisted under ESM, including Atlantaa Ltd, CyberTech Systems and Software Ltd, IB Infotech Enterprises Ltd, Magnus Steel and Infra Ltd, Padmanabh Industries Ltd, Rajasthan Gases Ltd, Shri Keshav Cements And Infra Ltd, Triton Corp Ltd, Umiya Mobile Ltd (SME), and Vaghani Techno Build Ltd. Additionally, Omnitex Industries India Ltd will move to a higher ESM stage. No securities are exiting the ESM framework in this update.

Key Points

  • 10 securities newly entering Enhanced Surveillance Measure framework
  • 1 security (Omnitex Industries India Ltd) moving to higher ESM stage
  • No securities moving to lower ESM stage or exiting ESM framework
  • Changes effective from October 7, 2025
  • Consolidated list includes 23+ securities across different ESM stages (Stage I and Stage II)
  • Framework includes both main board and SME securities

Regulatory Changes

The Enhanced Surveillance Measure framework is being applied to additional securities based on surveillance criteria. Securities under ESM face stricter trading conditions including:

  • Additional disclosure requirements
  • Price band restrictions
  • Trade-for-trade settlement (no intraday trading)
  • 100% upfront margin requirements for buyers and sellers
  • Enhanced monitoring of price movements and volumes

Securities can be placed in different ESM stages (I, II, etc.) with progressively stricter measures at higher stages.

Compliance Requirements

For Listed Companies:

  • Companies whose securities are placed under ESM must ensure timely compliance with all disclosure norms
  • Enhanced scrutiny of corporate announcements and financial disclosures
  • Prompt response to queries from exchange surveillance

For Trading Members and Investors:

  • Trade-for-trade settlement mandatory for ESM securities
  • 100% upfront margin requirement for all transactions
  • No intraday trading or short selling permitted
  • Enhanced due diligence required before trading

Important Dates

  • Effective Date: October 7, 2025 - All ESM changes come into effect
  • Circular Date: October 6, 2025 - Announcement date

Impact Assessment

Market Impact:

  • Reduced liquidity for affected securities due to trade-for-trade settlement
  • Potential price volatility as market adjusts to surveillance measures
  • Higher transaction costs due to 100% margin requirements
  • Investor sentiment may be negatively affected for securities entering ESM

Operational Impact:

  • Trading members must update systems to enforce ESM restrictions
  • Investors face restricted trading flexibility and higher capital requirements
  • Companies under ESM may face reputational concerns and reduced investor interest
  • Omnitex Industries moving to higher ESM stage faces additional restrictions

Investor Considerations:

  • ESM placement indicates exchange concerns about unusual price/volume movements
  • Investors should exercise caution and conduct thorough due diligence
  • Exit options limited due to reduced liquidity
  • Long-term investors less affected than short-term traders

Securities Newly Entering ESM (Effective Oct 7, 2025)

  1. Atlantaa Ltd (532759, INE285H01022)
  2. CyberTech Systems and Software Ltd (532173, INE214A01019)
  3. IB Infotech Enterprises Ltd (519463, INE678B01021)
  4. Magnus Steel and Infra Ltd (517320, INE898E01011)
  5. Padmanabh Industries Ltd (526905, INE743D01011)
  6. Rajasthan Gases Ltd (526873, INE184D01026)
  7. Shri Keshav Cements And Infra Ltd (530977, INE260E01014)
  8. Triton Corp Ltd (523387, INE982C01033)
  9. Umiya Mobile Ltd (544464, INE1P1A01018) - SME Scrip
  10. Vaghani Techno Build Ltd (531676, INE554H01021)

Securities Moving to Higher ESM Stage

  1. Omnitex Industries India Ltd (514324, INE814D01010) - Moving to higher surveillance stage

Impact Justification

Affects trading conditions for multiple securities with heightened surveillance measures, impacting liquidity and investor access. Direct operational impact on listed companies and their shareholders.