Description

BSE notification listing securities newly included in ESM framework, securities moving to higher ESM stages, and consolidated list of all securities under enhanced surveillance.

Summary

BSE has issued updates to the Enhanced Surveillance Measure (ESM) framework effective October 28, 2025. Six securities are newly shortlisted for inclusion in ESM, including Bits Ltd, Cargotrans Maritime Ltd, Emergent Industrial Solutions Ltd, Nivaka Fashions Ltd, Ontic Finserve Ltd, and Times Green Energy (India) Ltd. Additionally, Nidhi Granites Ltd will be moved to a higher ESM stage. No securities are moving to lower stages or exiting the framework at this time. The circular includes a consolidated list of 26+ securities currently under ESM surveillance.

Key Points

  • 6 securities newly shortlisted for ESM framework effective October 28, 2025
  • 2 of the newly included securities are SME scrips (marked with #)
  • Nidhi Granites Ltd (Scrip Code: 512103) moving to higher ESM stage
  • No securities moving to lower ESM stages
  • No securities exiting ESM framework in this update
  • Consolidated list includes securities across ESM Stage I and Stage II
  • ESM framework applies enhanced surveillance and trading restrictions

Regulatory Changes

The Enhanced Surveillance Measure (ESM) framework continues to be applied with updated security lists. Securities included in ESM are subject to:

  • Enhanced monitoring of price movements
  • Additional reporting requirements
  • Potential trading restrictions based on ESM stage
  • Periodic review for stage progression or exit

Securities can move between ESM stages or exit the framework based on ongoing surveillance parameters.

Compliance Requirements

  • Trading members must note the revised ESM security list effective October 28, 2025
  • Enhanced due diligence required for transactions in ESM securities
  • Compliance with stage-specific trading restrictions and surveillance measures
  • Members should update their risk management systems to reflect ESM classifications
  • Investors trading in ESM securities should be aware of enhanced surveillance and potential restrictions

Important Dates

  • Effective Date: October 28, 2025 - New ESM inclusions and stage changes take effect
  • Circular Date: October 27, 2025

Impact Assessment

Market Impact: High - ESM inclusion typically results in reduced liquidity and increased volatility for affected securities. The framework serves as a warning signal to investors about securities exhibiting unusual price movements or other surveillance concerns.

Trading Impact: Securities under ESM face enhanced scrutiny and may be subject to additional margin requirements, position limits, or other trading restrictions depending on the ESM stage. Movement to higher ESM stages increases these restrictions.

Investor Impact: Investors holding or trading these securities should exercise increased caution. ESM classification indicates heightened regulatory concern and may affect the ease of entry/exit from positions.

Securities Newly Affected:

  • Bits Ltd (526709)
  • Cargotrans Maritime Ltd (543618) - SME
  • Emergent Industrial Solutions Ltd (506180)
  • Nivaka Fashions Ltd (542206)
  • Ontic Finserve Ltd (540386)
  • Times Green Energy (India) Ltd (543310) - SME

Securities with Increased Surveillance:

  • Nidhi Granites Ltd (512103) - Moving to higher ESM stage indicates continued surveillance concerns

Impact Justification

ESM framework imposes significant trading restrictions on listed securities. New inclusions and stage upgrades affect investor trading ability and liquidity for multiple securities.