Description
BSE updates the list of securities under Enhanced Surveillance Measure (ESM) framework with 10 new additions, 1 security moving to higher stage ESM, and consolidated list of all ESM securities.
Summary
BSE has updated the Enhanced Surveillance Measure (ESM) framework effective October 7, 2025. Ten securities are being newly placed under ESM Stage I, 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 being moved out of the ESM framework.
Key Points
- 10 securities newly shortlisted for Enhanced Surveillance Measure (ESM) framework
- 1 security (Omnitex Industries India Ltd) moving to higher ESM stage
- No securities moving to lower ESM stages
- No securities exiting the ESM framework
- Changes effective from October 7, 2025
- Consolidated list includes 23+ securities across ESM Stage I and Stage II
- Multiple SME scrips included in surveillance measures
Regulatory Changes
The ESM framework applies enhanced surveillance measures to securities that exhibit abnormal price movements or trading patterns. Securities under ESM are subject to:
- Reduced price bands
- Higher margin requirements
- Additional disclosure requirements from companies
- Periodic call auction sessions instead of continuous trading
- Stage-based escalation for continued non-compliance or abnormal behavior
Compliance Requirements
For Listed Companies:
- Companies whose securities are placed under ESM must provide additional disclosures
- Enhanced monitoring of corporate announcements and material events
- Compliance with stricter reporting standards
For Brokers and Traders:
- Adhere to revised margin requirements for ESM securities
- Inform clients about ESM status and associated trading restrictions
- Monitor trading activity in ESM securities more closely
For Investors:
- Awareness of reduced liquidity due to periodic call auctions
- Higher capital requirements due to increased margins
- Limited trading windows compared to normal securities
Important Dates
- Effective Date: October 7, 2025 - All ESM changes come into effect
- Circular Date: October 6, 2025
Impact Assessment
Market Impact:
- Reduced liquidity for 10 newly added securities due to surveillance restrictions
- Potential price discovery challenges with call auction mechanisms
- Increased volatility concerns addressed through tighter price bands
Investor Impact:
- Higher margin requirements will increase capital costs for positions in ESM securities
- Limited trading opportunities with periodic auction sessions
- Potential difficulty in entry/exit from positions
Company Impact:
- Reputational concerns for companies placed under enhanced surveillance
- Pressure to improve corporate governance and disclosure practices
- Need to address concerns that led to ESM placement to avoid further escalation
Operational Impact:
- Trading members must update systems for margin calculations
- Risk management systems need recalibration for ESM securities
- Investor education required regarding ESM restrictions and implications
Securities Newly Added to ESM (Effective Oct 7, 2025)
- Atlantaa Ltd (532759, INE285H01022)
- CyberTech Systems and Software Ltd (532173, INE214A01019)
- IB Infotech Enterprises Ltd (519463, INE678B01021)
- Magnus Steel and Infra Ltd (517320, INE898E01011)
- Padmanabh Industries Ltd (526905, INE743D01011)
- Rajasthan Gases Ltd (526873, INE184D01026)
- Shri Keshav Cements And Infra Ltd (530977, INE260E01014)
- Triton Corp Ltd (523387, INE982C01033)
- Umiya Mobile Ltd# (544464, INE1P1A01018) - SME Scrip
- Vaghani Techno Build Ltd (531676, INE554H01021)
Securities Moving to Higher ESM Stage
- Omnitex Industries India Ltd (514324, INE814D01010) - Moving to higher stage
Impact Justification
ESM placement significantly restricts trading with tighter price bands, higher margins, and periodic call auctions, directly impacting liquidity and trading activity for listed securities.