Description

BSE updates Enhanced Surveillance Measure framework with securities being added, moved to higher/lower stages, and removed from ESM effective October 27, 2025.

Summary

BSE has issued updates to the Enhanced Surveillance Measure (ESM) framework effective October 27, 2025. The circular identifies securities being newly added to ESM (6 securities), securities moving to higher ESM stages (2 securities), securities moving to lower ESM stages (22 securities), and securities being removed from the ESM framework entirely (18+ securities listed in Annexure II).

Key Points

  • 6 securities newly shortlisted for ESM framework: Aptus Pharma Ltd, Avax Apparels and Ornaments Ltd, Envair Electrodyne Ltd, Hindustan Appliances Ltd, Purple Entertainment Ltd, Zelio E Mobility Ltd
  • 2 securities moving to higher ESM stages: Anirit Ventures Ltd, Genesis Ibrc India Ltd
  • 22 securities moving to lower ESM stages including Amalgamated Electricity Company Ltd, Avance Technologies Ltd, Nectar Lifesciences Ltd, and others
  • 18+ securities moving out of ESM framework including A2Z Infra Engineering Ltd, Bhagyanagar India Ltd, Citadel Realty and Developers Ltd, Desh Rakshak Aushdhalaya Ltd, and others
  • Multiple SME scrips included in the updates (marked with #)
  • Changes aligned with NSE framework (as indicated)

Regulatory Changes

The Enhanced Surveillance Measure framework is being updated with multi-directional movements:

  1. New ESM Inclusions: Securities will face enhanced surveillance measures including potential restrictions on trading parameters
  2. Stage Escalations: Securities moving to higher ESM stages face stricter surveillance and trading restrictions
  3. Stage De-escalations: Securities moving to lower ESM stages receive relaxed surveillance measures
  4. ESM Exits: Securities removed from ESM framework return to normal trading parameters

Compliance Requirements

  • Market participants must adjust trading strategies for affected securities from October 27, 2025
  • Brokers must update surveillance alerts and client communications for impacted scrips
  • Risk management systems should reflect new ESM classifications
  • Investors holding positions in newly added ESM securities should review position sizes and risk exposure
  • Trading members must comply with any additional margin requirements or position limits for ESM securities

Important Dates

  • Effective Date: October 27, 2025 - All ESM framework changes become applicable
  • Circular Date: October 24, 2025

Impact Assessment

Market Impact: High - affects 56+ securities across main board and SME segments with varied liquidity profiles.

Trading Impact: Securities entering or moving to higher ESM stages may experience:

  • Reduced liquidity due to additional surveillance measures
  • Potential trading restrictions (price bands, quantity limits)
  • Increased margin requirements
  • Higher volatility due to market perception

Investor Impact: Investors in affected securities should:

  • Review portfolio exposure to newly added ESM securities
  • Monitor securities moving to higher stages for increased risk
  • Consider rebalancing positions based on new surveillance status
  • Note improved conditions for securities exiting ESM or moving to lower stages

Compliance Impact: Trading members must update systems, risk controls, and client communications to reflect ESM changes within 3 days.

Impact Justification

High impact circular affecting 56 securities across ESM framework with additions, stage migrations, and removals. Critical for traders and investors in affected securities with mandatory compliance from October 27, 2025.