Description

BSE announces addition of 3 new securities to ESM framework and movement of 2 securities to higher ESM stages effective October 16, 2025.

Summary

BSE has issued updates to the Enhanced Surveillance Measure (ESM) Framework effective October 16, 2025. Three securities are being newly added to the ESM framework: Raj Packaging Industries Ltd, Titan Intech Ltd, and We Win Ltd. Additionally, two securities currently under ESM will be moved to higher surveillance stages: Magnus Steel and Infra Ltd and Mahaveer Infoway Ltd. The circular also includes a consolidated list of 27+ securities currently under various ESM stages. No securities are being removed from the ESM framework or moved to lower stages.

Key Points

  • 3 new securities shortlisted for ESM framework starting October 16, 2025
  • 2 existing ESM securities moving to higher surveillance stages
  • No securities moving to lower ESM stages
  • No securities exiting the ESM framework
  • Consolidated list shows 27+ securities across ESM Stage I and Stage II
  • We Win Ltd marked with asterisk indicating NSE alignment

Regulatory Changes

The ESM framework is a surveillance mechanism used by BSE to monitor securities that exhibit abnormal price movements or other concerning trading patterns. Securities under ESM are subject to additional restrictions including:

  • Trade-for-Trade (T4T) settlement
  • 100% upfront margin requirements
  • No intraday trading allowed
  • Additional disclosure requirements

Progressive stages (Stage I, II, etc.) indicate escalating levels of surveillance with increasingly stringent restrictions.

Compliance Requirements

For Trading Members:

  • Ensure compliance with T4T settlement for listed securities
  • Collect 100% upfront margins from clients before order placement
  • Update risk management systems for affected securities
  • Inform clients about ESM applicability on their holdings

For Investors:

  • No intraday trading permitted in ESM securities
  • Full payment required before purchase
  • Delivery mandatory for all transactions
  • Enhanced due diligence recommended before trading

Important Dates

  • Effective Date: October 16, 2025 - ESM changes become applicable
  • Circular Date: October 15, 2025

Impact Assessment

Market Impact:

  • Reduced liquidity in affected securities due to T4T restrictions
  • Potential price volatility during transition period
  • Limited participation from intraday traders

Operational Impact:

  • Trading members must update surveillance lists and margin requirements
  • Investors holding these securities face reduced trading flexibility
  • Higher capital requirements for taking positions

Affected Securities Details:

Newly Added to ESM (Stage I):

  1. Raj Packaging Industries Ltd (530111, INE639C01013)
  2. Titan Intech Ltd (521005, INE807M01031)
  3. We Win Ltd (543535, INE082W01014)

Moving to Higher ESM Stage:

  1. Magnus Steel and Infra Ltd (517320, INE898E01011)
  2. Mahaveer Infoway Ltd (539383, INE019D01016)

The ESM framework serves as a protective mechanism for investors by flagging securities with unusual activity patterns, but it also restricts trading flexibility and may impact market depth for the affected securities.

Impact Justification

Affects trading conditions for 5 securities with ESM framework changes. Important for investors holding these stocks as it impacts liquidity and trading restrictions.