Description

BSE updates the list of securities under Enhanced Surveillance Measure framework, effective October 21, 2025, including new additions and stage transitions.

Summary

BSE has issued updates to the Enhanced Surveillance Measure (ESM) Framework effective October 21, 2025. The circular identifies 7 securities newly shortlisted for ESM, 3 securities moving to higher ESM stages, and provides a consolidated list of all securities currently under various ESM stages. No securities are moving to lower stages or exiting the framework.

Key Points

  • 7 new securities added to ESM Framework: Earkart Ltd, Gujarat Raffia Industries Ltd, Hybrid Financial Services Ltd, Modern Malleables Ltd, Nilachal Carbo Metalicks Ltd, Tarapur Transformers Ltd, and Venmax Drugs and Pharmaceuticals Ltd
  • 3 securities moving to higher ESM stages: GDL Leasing & Finance Ltd, Prima Industries Ltd, and VR Woodart Ltd
  • No securities moving to lower ESM stages or exiting the framework
  • Consolidated list includes 24+ securities across different ESM stages (Stage I and Stage II)
  • Multiple SME scrips included in the surveillance framework
  • Changes aligned with NSE for certain securities

Regulatory Changes

The Enhanced Surveillance Measure (ESM) Framework continues BSE’s ongoing surveillance mechanism to monitor securities exhibiting abnormal price movements or other risk characteristics. Securities under ESM face additional trading restrictions and surveillance requirements depending on their assigned stage.

Compliance Requirements

  • Market participants must be aware of securities under ESM framework before trading
  • Enhanced due diligence required for transactions in ESM securities
  • Brokers and investors should note the ESM stage of securities as it impacts trading conditions
  • Additional margin requirements and price bands may apply to ESM securities

Important Dates

  • Effective Date: October 21, 2025 - All ESM changes become applicable

Impact Assessment

Trading Impact: Securities placed under ESM face reduced liquidity due to additional surveillance measures. New additions will experience tighter price bands and potentially higher margin requirements.

Investor Impact: Investors holding or trading these securities should expect increased volatility monitoring, potential trading restrictions, and higher transaction costs. Securities moving to higher ESM stages face progressively stricter surveillance.

Market Impact: The framework aims to protect investor interests by identifying and monitoring high-risk securities, potentially reducing systemic risk but may impact short-term liquidity in affected scrips.

Impact Justification

Direct impact on trading of multiple securities with enhanced surveillance restrictions affecting liquidity and trading conditions for investors