Description

BSE updates the list of securities under Enhanced Surveillance Measure framework, including new additions, stage movements, and exits effective October 27, 2025.

Summary

BSE has issued updates to the Enhanced Surveillance Measure (ESM) framework effective October 27, 2025. The circular identifies three categories of changes: (1) Six securities newly shortlisted for ESM, (2) Two securities moving to higher ESM stages, (3) Twenty-two securities moving to lower ESM stages, and securities exiting the ESM framework entirely. The ESM framework is a surveillance mechanism applied to securities exhibiting abnormal price movements or other market concerns, imposing additional trading restrictions and margin requirements.

Key Points

  • 6 securities newly added to ESM framework including Aptus Pharma Ltd, Avax Apparels and Ornaments Ltd, Envair Electrodyne Ltd, Hindustan Appliances Ltd, Purple Entertainment Ltd, and Zelio E Mobility Ltd
  • 2 securities (Anirit Ventures Ltd and Genesis Ibrc India Ltd) escalated to higher ESM stages
  • 22 securities downgraded to lower ESM stages, indicating improved market behavior
  • Multiple securities removed from ESM framework entirely (Annexure II listing over 18 companies)
  • Changes include both mainboard and SME segment securities (marked with #)
  • Effective date: October 27, 2025

Regulatory Changes

The ESM framework applies progressive surveillance measures based on security behavior. Securities in ESM face:

  • Additional Surveillance Deposit (ASD) requirements
  • Increased margin obligations
  • Price bands and trading restrictions
  • Stage-wise escalation for continued non-compliance

Movement between ESM stages reflects changes in volatility, delivery percentage, and other surveillance parameters monitored by the exchange.

Compliance Requirements

  • Trading Members: Must collect additional margins as per ESM stage requirements for affected securities
  • Investors: Should be aware of enhanced margin requirements and trading restrictions on ESM securities
  • Market Participants: Need to update risk management systems to reflect new ESM classifications
  • Surveillance Systems: Trading platforms must implement restrictions effective October 27, 2025

Important Dates

  • Effective Date: October 27, 2025 - All ESM changes take effect
  • Circular Date: October 24, 2025

Impact Assessment

Market Impact: Medium - affects 68+ securities across various categories. New ESM additions will face immediate trading restrictions and increased costs.

Operational Impact: Trading members must adjust margin collection systems and inform clients about changed surveillance status. Securities moving to higher ESM stages face stricter restrictions, while those moving lower or exiting gain improved liquidity conditions.

Investor Impact: Investors holding or trading affected securities will experience changes in margin requirements. Securities entering ESM for the first time may see reduced trading activity due to higher barriers. Exit from ESM framework is positive for those securities, potentially improving liquidity and reducing trading costs.

Risk Mitigation: The ESM framework serves as an early warning system for securities with irregular price behavior, protecting investors from excessive speculation while allowing exchanges to monitor and control potential market manipulation.

Impact Justification

Affects trading conditions for 68 securities across additions, stage changes, and exits from ESM framework. Medium impact as ESM placement increases trading restrictions and margin requirements for affected stocks.