Description

BSE announces changes to Enhanced Surveillance Measure framework with 3 new securities added, 3 securities moved to higher ESM stages, and updates to the consolidated ESM list effective October 29, 2025.

Summary

BSE has announced changes to the Enhanced Surveillance Measure (ESM) framework effective October 29, 2025. Three new securities are being added to ESM Stage I, three existing securities are being moved to higher ESM stages, and no securities are moving to lower stages or exiting the framework. The circular includes a consolidated list of 27+ securities currently under ESM across different stages.

Key Points

  • 3 new securities shortlisted for ESM framework: Ameenji Rubber Ltd (SME), Chandni Machines Ltd, and Response Informatics Ltd
  • 3 securities moving to higher ESM stages: Kkalpana Plastick Ltd, Mudunuru Ltd, and PVP Ventures Ltd
  • No securities moving to lower ESM stages
  • No securities exiting the ESM framework
  • Consolidated list includes securities in ESM Stage I and Stage II
  • Changes effective from October 29, 2025
  • Framework includes both main board and SME scrips

Regulatory Changes

The Enhanced Surveillance Measure framework continues to apply stricter surveillance and trading restrictions on securities that exhibit abnormal price movements or other concerning trading patterns. Securities under ESM are subject to additional disclosure requirements and trading restrictions including:

  • Trade-for-trade settlement (no intraday trading)
  • 100% upfront margin requirements
  • Additional surveillance and monitoring
  • Progressive stages (Stage I, Stage II, etc.) with increasing restrictions

Securities Details

New Entries to ESM Stage I:

  1. Ameenji Rubber Ltd (Scrip: 544555, ISIN: INE14QA01016) - SME scrip
  2. Chandni Machines Ltd (Scrip: 542627, ISIN: INE01GZ01011)
  3. Response Informatics Ltd (Scrip: 538273, ISIN: INE401B01010)

Moving to Higher ESM Stages:

  1. Kkalpana Plastick Ltd (Scrip: 523652, ISIN: INE465K01016)
  2. Mudunuru Ltd (Scrip: 538743, ISIN: INE491C01027)
  3. PVP Ventures Ltd (Scrip: 517556, ISIN: INE362A01016)

Sample from Consolidated ESM List:

  • AAA Technologies Ltd - Stage I
  • Aarey Drugs & Pharmaceuticals Ltd - Stage II
  • Aarvee Denims & Exports Ltd - Stage I
  • ABM Knowledgeware Ltd - Stage I
  • Multiple other securities across various stages

Compliance Requirements

  • Investors trading in ESM securities must comply with trade-for-trade settlement requirements
  • 100% upfront margin required for all ESM securities
  • No intraday trading or short selling permitted
  • Market participants must ensure adequate risk disclosures to clients
  • Brokers must mark ESM securities appropriately in their systems

Important Dates

  • Effective Date: October 29, 2025 - All ESM framework changes become applicable
  • Circular Date: October 28, 2025

Impact Assessment

Market Impact: Medium - The changes affect a limited number of securities but impose significant trading restrictions on those stocks. Addition of 3 new securities to ESM and upward movement of 3 existing securities indicates heightened surveillance concerns.

Investor Impact: Investors holding or trading these securities will face:

  • Reduced liquidity due to trade-for-trade settlement
  • Higher capital requirements (100% margin)
  • No ability to conduct intraday trading
  • Potential price impact due to reduced participation

Operational Impact: Brokers and trading members must update their systems to reflect new ESM classifications and ensure proper margin collection and settlement processes for affected securities.

Impact Justification

Affects 6 securities with ESM framework changes including new additions and stage movements. ESM framework impacts trading conditions and investor participation but changes affect a limited number of securities.