Enhanced Surveillance Measure (ESM) - Securities List Update Effective October 10, 2025

Description

BSE updates the list of securities under Enhanced Surveillance Measure (ESM) framework, adding Mcleod Russel India Ltd and moving three securities to higher ESM stages effective October 10, 2025.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) framework effective October 10, 2025. One new security (Mcleod Russel India Ltd) has been added to the ESM framework. Three existing securities (Bluegod Entertainment Ltd, IEC Education Ltd, and Parshwanath Corporation Ltd) will be moved to higher ESM stages. No securities are moving to lower ESM stages or exiting the framework. A consolidated list shows 30 securities (partial list provided) currently under ESM with their respective stages (Stage I or Stage II).

Key Points

• Mcleod Russel India Ltd (Scrip Code: 532654, ISIN: INE942G01012) newly shortlisted in ESM framework
• Three securities escalating to higher ESM stages: Bluegod Entertainment Ltd, IEC Education Ltd, and Parshwanath Corporation Ltd
• No securities moving to lower ESM stages
• No securities exiting the ESM framework in this update
• Consolidated list includes both main board and SME securities
• ESM stages range from Stage I to Stage II based on surveillance criteria

Regulatory Changes

The Enhanced Surveillance Measure (ESM) framework applies stricter surveillance and trading restrictions to securities exhibiting abnormal price movements, high volatility, or other market integrity concerns. Securities in ESM are subject to:

• Additional margin requirements
• Trade-for-trade settlement (no intraday trading)
• Price bands restrictions
• Enhanced disclosure requirements
• Periodic review for stage escalation or de-escalation

Securities moving to higher ESM stages face progressively stricter measures.

Compliance Requirements

• Market participants must comply with ESM trading restrictions for affected securities
• Brokers must collect additional surveillance margins as prescribed
• Investors cannot take intraday positions in ESM securities (trade-for-trade settlement mandatory)
• Listed companies under ESM may face additional disclosure obligations
• Trading members must ensure their systems reflect updated ESM classifications

Important Dates

• Effective Date: October 10, 2025 - All ESM changes become applicable
• Circular Date: October 9, 2025

Impact Assessment

Market Impact: Securities under ESM face reduced liquidity due to trade-for-trade settlement and higher margin requirements. The addition of Mcleod Russel India Ltd and stage escalation of three securities will likely reduce trading volumes and increase trading costs for these stocks.

Investor Impact: Investors holding or trading these securities must provide additional margins and cannot engage in intraday trading. Stage escalation indicates deteriorating market quality metrics, requiring increased caution.

Operational Impact: Brokers and trading systems must update ESM classifications, margin calculations, and settlement processes for affected securities before October 10, 2025.

Securities Added to ESM

Securities Moving to Higher ESM Stages

Impact Justification

ESM placement significantly impacts trading with stricter surveillance, margin requirements, and trading restrictions. Addition of new securities and stage escalations affect investor trading strategies and risk exposure.