Description

BSE announces addition of 3 new securities to ESM framework and movement of 2 securities to higher ESM stages, with no securities moving out or to lower stages.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) framework effective October 16, 2025. Three new securities are being added to the ESM framework: Raj Packaging Industries Ltd, Titan Intech Ltd, and We Win Ltd. Additionally, two securities currently in ESM - Magnus Steel and Infra Ltd and Mahaveer Infoway Ltd - are being moved to higher ESM stages. No securities are moving out of the ESM framework or being downgraded to lower stages. The consolidated list shows 27+ securities currently under various ESM stages.

Key Points

  • 3 new securities shortlisted for ESM framework: Raj Packaging Industries Ltd (530111), Titan Intech Ltd (521005), and We Win Ltd (543535)
  • 2 securities moving to higher ESM stages: Magnus Steel and Infra Ltd (517320) and Mahaveer Infoway Ltd (539383)
  • Zero securities moving to lower ESM stages or exiting the framework
  • Consolidated list includes 27+ securities across ESM Stage I and Stage II
  • Changes take effect from October 16, 2025

Regulatory Changes

The Enhanced Surveillance Measure (ESM) framework continues to be applied to securities that exhibit abnormal price movements, high volatility, or other market integrity concerns. Securities in ESM face additional trading restrictions including:

  • Trade-for-trade settlement (no intraday trading)
  • 100% upfront margin requirements
  • Progressive restrictions based on ESM stage (Stage I through higher stages)
  • Potential additional surveillance requirements at higher stages

Compliance Requirements

  • Trading members must ensure 100% upfront margin collection for all ESM securities
  • Only delivery-based trading permitted (no intraday positions)
  • Members must comply with additional surveillance requirements for securities in higher ESM stages
  • Investors should note that securities marked with (*) follow NSE classification and (#) denote SME scrips
  • Securities moving to higher stages face increasingly stringent trading restrictions

Important Dates

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

Impact Assessment

Market Impact: Medium - Five securities are directly affected, with three new additions facing immediate trading restrictions and two existing ESM securities facing tighter controls through stage upgrades.

Investor Impact: Trading liquidity will be significantly reduced for the affected securities due to trade-for-trade requirements and 100% margin obligations. Investors holding these securities may find it difficult to exit positions quickly.

Operational Impact: Brokers and trading members must update their systems to enforce ESM restrictions on the newly added securities and enhanced restrictions on upgraded securities. Risk management systems need recalibration for margin requirements.

Compliance Impact: Market participants must ensure awareness of ESM status changes to avoid surveillance penalties for non-compliance with trade-for-trade and margin requirements.

Impact Justification

Affects 5 securities with trading restrictions under ESM framework, limiting investor liquidity and requiring additional surveillance compliance