Description

BSE circular detailing securities being added to, moved within, and removed from the Enhanced Surveillance Measure (ESM) framework effective November 03, 2025.

Summary

BSE has announced changes to the Enhanced Surveillance Measure (ESM) framework effective November 03, 2025. The circular identifies securities being newly added to ESM, securities being moved to higher or lower ESM stages, and securities being removed from the ESM framework. The ESM framework is designed to enhance market surveillance and protect investor interests by imposing additional monitoring and trading restrictions on securities that exhibit abnormal price movements or other concerns.

Key Points

  • 2 securities being newly shortlisted under ESM framework: Consolidated Construction Consortium Ltd and TeleCanor Global Ltd
  • 2 securities moving to higher ESM stages: Amit Securities Ltd and Cubical Financial Services Ltd
  • 25 securities moving to lower ESM stages including Achyut Healthcare Ltd, Arunis Abode Ltd, Bafna Pharmaceuticals Ltd, and others
  • 19 securities moving out of ESM framework entirely including Ace Alpha Tech Ltd, Addi Industries Ltd, Agio Paper & Industries Ltd, and others
  • Changes apply to both main board and SME segment securities (marked with #)
  • Several securities listed are as per NSE specifications (marked with *)

Regulatory Changes

The ESM framework operates on a staged approach where securities face progressively stricter surveillance measures as they move to higher stages. Securities in ESM may face:

  • Additional disclosure requirements
  • Higher margin requirements for trading
  • Trade-for-trade settlement (no intraday trading)
  • Price bands and other trading restrictions

Movement between stages is based on continued monitoring of price behavior, volumes, and compliance with disclosure norms.

Compliance Requirements

  • Trading Members: Must ensure compliance with applicable margin requirements and trading restrictions for securities under ESM
  • Listed Companies: Companies whose securities are entering or moving within ESM should be aware of enhanced disclosure obligations
  • Investors: Should note that securities under ESM have restricted trading mechanisms and may require 100% upfront margin
  • Risk Management: Trading members must update their risk management systems to reflect the new ESM classifications

Important Dates

  • Effective Date: November 03, 2025 - All changes to ESM framework classifications become effective
  • Circular Date: October 31, 2025

Impact Assessment

Market Impact: The movement of 48 securities within or out of the ESM framework will affect trading liquidity and investor participation in these scrips. Securities moving to higher stages will face stricter trading restrictions, while those moving to lower stages or exiting ESM will see relaxed conditions.

Operational Impact: Trading members must update their systems, risk management tools, and margin collection mechanisms to reflect the new ESM status of affected securities. Compliance teams need to review positions and client holdings in these securities.

Investor Impact: Investors holding or trading these securities should note that ESM securities typically require higher margins and may be subject to trade-for-trade settlement, limiting intraday trading opportunities. Securities exiting ESM will see improved liquidity conditions.

Positive Developments: 19 securities moving out of ESM framework indicates improved compliance and normalized price behavior, which is positive for market confidence in these scrips.

Impact Justification

Affects trading operations for 52 securities across multiple stages of ESM framework, requiring attention from traders and compliance teams but represents routine surveillance adjustments.