Description

BSE updates the list of securities under Enhanced Surveillance Measure (ESM) framework with additions, stage changes, and consolidated list effective October 10, 2025.

Summary

BSE has issued an update to the Enhanced Surveillance Measure (ESM) framework effective October 10, 2025. One new security (Mcleod Russel India Ltd) has been added to ESM, three securities are moving to higher ESM stages (Bluegod Entertainment Ltd, IEC Education Ltd, Parshwanath Corporation Ltd), and no securities are being removed from the framework. A consolidated list of 30+ securities currently under various ESM stages is provided.

Key Points

  • 1 security newly shortlisted for ESM: Mcleod Russel India Ltd (Scrip Code: 532654, ISIN: INE942G01012)
  • 3 securities moving to higher ESM stages: Bluegod Entertainment Ltd, IEC Education Ltd, Parshwanath Corporation Ltd
  • No securities moving to lower ESM stages
  • No securities exiting the ESM framework
  • Consolidated list includes securities in ESM Stage I and Stage II
  • Changes take effect from October 10, 2025

Regulatory Changes

The Enhanced Surveillance Measure (ESM) framework is BSE’s surveillance mechanism to alert investors about securities where unusual price movements or trading patterns have been observed. Securities under ESM face additional scrutiny and may have trading restrictions such as reduced price bands, 100% margin requirements, or trade-for-trade settlement.

New Additions:

  • Mcleod Russel India Ltd enters ESM framework

Stage Upgrades (Moving to Higher Stages):

  • Bluegod Entertainment Ltd (Scrip Code: 539175)
  • IEC Education Ltd (Scrip Code: 531840)
  • Parshwanath Corporation Ltd (Scrip Code: 511176)

Compliance Requirements

  • Investors: Should exercise enhanced caution when trading securities under ESM framework
  • Trading Members: Must ensure awareness of ESM applicability and communicate restrictions to clients
  • Listed Companies: Securities under ESM may face reputational impact and should work towards addressing underlying concerns
  • Securities marked with * are as per NSE classification
  • Securities marked with # are SME scrips

Important Dates

  • Effective Date: October 10, 2025 - ESM changes come into force
  • Circular Date: October 9, 2025

Impact Assessment

Market Impact: Medium - ESM framework affects trading conditions for specific securities, potentially reducing liquidity and increasing costs for investors through higher margin requirements. The addition of only one new security and upgrades of three existing securities indicates targeted surveillance action.

Investor Impact: Investors holding or trading these securities should be aware that ESM designation signals regulatory concern about price movements or trading patterns. Higher margins (typically 100%) and trade-for-trade settlement may apply, affecting trading strategies and liquidity.

Operational Impact: Trading members must update their systems and risk management frameworks to reflect the new ESM classifications and communicate these changes to affected clients before the effective date.

Consolidated ESM List Highlights

The circular provides a consolidated list of securities under ESM with their respective stages (Stage I or Stage II). Notable securities include:

  • Stage I: AA Plus Tradelink Ltd, AAA Technologies Ltd, Aarvee Denims & Exports Ltd, A2Z Infra Engineering Ltd, and others
  • Stage II: Aarey Drugs & Pharmaceuticals Ltd, Abate As Industries Ltd, Agio Paper & Industries Ltd, Andhra Cements Ltd, and others

Securities can progress through multiple ESM stages if concerns persist, with each stage typically imposing stricter surveillance measures.

Impact Justification

Affects trading conditions for specific securities under surveillance but is routine regulatory action for market integrity