Description

BSE updates to Enhanced Surveillance Measure framework including addition of Deep Diamond India Ltd, stage changes for 5 securities, and consolidated list of 26+ securities under ESM.

Summary

BSE has issued updates to the Enhanced Surveillance Measure (ESM) framework effective October 17, 2025. The circular includes one new security being added to ESM (Deep Diamond India Ltd), five securities moving to higher ESM stages, and no securities exiting the framework. A consolidated list shows 26+ securities currently under various ESM stages.

Key Points

  • Deep Diamond India Ltd (Scrip Code: 539559, ISIN: INE005G01026) newly shortlisted under ESM framework
  • Five securities moving to higher ESM stages: Chandrima Mercantiles Ltd, Inter Globe Finance Ltd, Mirc Electronics Ltd, Titan Biotech Ltd, and Triton Corp Ltd
  • No securities moving to lower ESM stages
  • No securities exiting ESM framework (though some may move to SMP or IBC frameworks)
  • Consolidated list includes securities in ESM Stage I and Stage II
  • Changes effective from October 17, 2025

Regulatory Changes

The ESM framework applies heightened surveillance to securities exhibiting abnormal price movements or trading patterns. Securities under ESM are subject to:

  • Trade-for-trade settlement (no intraday trading)
  • Additional surveillance deposits
  • Progressive restrictions based on ESM stage
  • Movement to higher stages indicates continued concerns about price/volume behavior

Compliance Requirements

  • Trading members must ensure compliance with ESM framework requirements for affected securities
  • All trades in ESM securities will be settled on trade-for-trade basis
  • Enhanced margin and surveillance deposit requirements apply
  • Market participants should review positions in affected securities

Important Dates

  • Effective Date: October 17, 2025
  • All ESM changes applicable from market opening on this date

Impact Assessment

Trading Impact: Securities under ESM face restricted trading with no intraday positions allowed, which reduces liquidity and increases transaction costs for investors.

Investor Impact: Holders of the six specifically mentioned securities (1 new addition, 5 stage upgrades) will face stricter trading conditions. Higher ESM stages typically indicate persistent concerns about unusual price movements.

Market Impact: Limited overall market impact as ESM typically affects smaller-cap securities with existing trading concerns. The framework serves as a protective measure to prevent excessive speculation.

Stage Progression: The movement of five securities to higher ESM stages suggests ongoing surveillance concerns despite existing restrictions, potentially leading to further regulatory actions if patterns persist.

Impact Justification

Affects trading conditions for multiple securities under enhanced surveillance, with stage changes impacting existing ESM securities and one new addition