Description
BSE circular updating the list of securities under Enhanced Surveillance Measure (ESM) framework, including new additions, stage movements, and consolidated list of all ESM securities.
Summary
BSE has issued updates to the Enhanced Surveillance Measure (ESM) Framework effective October 31, 2025. The circular identifies 5 new securities being added to ESM Stage I, 2 securities moving to higher ESM stages, and provides a consolidated list of all securities currently under ESM surveillance. No securities are exiting the ESM framework in this update.
Key Points
- 5 new securities shortlisted for ESM Stage I: Adcon Capital Services Ltd, Aztec Fluids & Machinery Ltd, Essar Shipping Ltd, Groarc Industries India Ltd, and Riddhi Steel and Tube Ltd
- 2 securities moving to higher ESM stages: Explicit Finance Ltd and Natura Hue Chem Ltd
- No securities moving to lower ESM stages
- No securities moving out of ESM framework
- Changes effective from October 31, 2025
- Consolidated list includes at least 25 securities across various ESM stages
Regulatory Changes
The Enhanced Surveillance Measure (ESM) framework is BSE’s risk management mechanism to enhance market integrity and safeguard investor interest. Securities under ESM are subject to additional surveillance measures including:
- Trading restrictions and additional margin requirements
- Stage-wise progression based on continued surveillance triggers
- Trade-for-trade settlement basis
- Enhanced disclosure requirements
Securities Added to ESM Stage I (Effective Oct 31, 2025)
| Scrip Code | ISIN | Company Name |
|---|---|---|
| 539506 | INE805Q01028 | Adcon Capital Services Ltd |
| 544177 | INE0SCB01016 | Aztec Fluids & Machinery Ltd |
| 533704 | INE122M01019 | Essar Shipping Ltd* |
| 532315 | INE042B01012 | Groarc Industries India Ltd |
| 540082 | INE367U01013 | Riddhi Steel and Tube Ltd |
*As per NSE
Securities Moving to Higher ESM Stages (Effective Oct 31, 2025)
| Scrip Code | ISIN | Company Name |
|---|---|---|
| 530571 | INE335G01019 | Explicit Finance Ltd |
| 531834 | INE487B01019 | Natura Hue Chem Ltd |
Compliance Requirements
- Investors holding securities under ESM should be aware of additional trading restrictions
- All trades in ESM securities are on trade-for-trade basis with no intraday squaring off
- Additional surveillance deposit/margin requirements apply
- Price bands and position limits may be more restrictive
- Enhanced reporting and disclosure obligations for listed companies
Important Dates
- Effective Date: October 31, 2025 - All ESM framework changes become applicable
- Circular Date: October 30, 2025
Impact Assessment
Market Impact: Medium - The addition of 5 securities to ESM Stage I and movement of 2 securities to higher stages will result in increased trading restrictions and margin requirements for these specific stocks. Liquidity in these securities may be reduced due to trade-for-trade settlement requirements.
Investor Impact: Investors holding or trading these securities will face:
- Higher margin requirements
- Inability to square off positions intraday
- Potential price volatility due to enhanced surveillance
- Additional compliance and settlement obligations
Operational Impact: Brokers and trading members must update their risk management systems to reflect new ESM classifications and ensure appropriate margins are collected from clients trading these securities.
Impact Justification
Regular ESM framework update affecting specific securities with trading restrictions; impacts investors holding or trading these stocks but is part of routine surveillance measures