Description

BSE updates Enhanced Surveillance Measure framework with additions, removals, and stage changes for multiple securities effective November 10, 2025.

Summary

BSE has announced changes to the Enhanced Surveillance Measure (ESM) framework effective November 10, 2025. Four securities are being newly added to ESM, one security is moving to a higher ESM stage, ten securities are moving to lower ESM stages, and fourteen securities are exiting the ESM framework entirely. The circular also provides a consolidated list of all securities currently under ESM with their respective stages.

Key Points

  • 4 securities newly shortlisted for ESM framework: Commercial Syn Bags Ltd, Contil India Ltd, Libord Finance Ltd, and S.V.J. ENTERPRISES Ltd
  • 1 security moving to higher ESM stage: RR Financial Consultants Ltd
  • 10 securities moving to lower ESM stages, including Auto Pins (India) Ltd, B-Right Realestate Ltd, Fynx Capital Ltd, and others
  • 14 securities exiting ESM framework completely, including Amalgamated Electricity Company Ltd, Elegant Floriculture & Agrotech India Ltd, GG Automotive Gears Ltd, and others
  • Some securities exiting ESM due to inclusion in SMP Framework or IBC Framework
  • Certain scrips (Rainbow Foundations Ltd and Rap Corp Ltd) will continue in Trade for Trade despite ESM exit
  • Consolidated list includes securities at various ESM stages (Stage I, II, etc.)

Regulatory Changes

The Enhanced Surveillance Measure framework is being updated with additions, removals, and stage migrations. Securities under ESM face additional surveillance and trading restrictions based on concerns such as price volatility, corporate governance issues, or compliance matters. Movement to higher stages typically means stricter surveillance, while movement to lower stages or removal indicates improved compliance or trading behavior.

Compliance Requirements

  • Trading members and investors must note the changed ESM status of affected securities
  • Securities newly added to ESM will face enhanced surveillance and potential trading restrictions
  • Investors should be aware of the increased risk profile associated with ESM securities
  • Market participants must comply with specific trading conditions applicable to each ESM stage
  • For securities marked with special symbols (*, #, $, @, ^, ~), specific conditions apply as noted in the circular

Important Dates

  • Effective Date: November 10, 2025 - All ESM framework changes become effective

Impact Assessment

Market Impact: The changes affect 29 securities across various ESM actions (additions, removals, stage changes). Securities entering or moving to higher ESM stages may experience reduced liquidity and increased trading restrictions. Securities exiting ESM framework should see improved trading conditions and potentially better liquidity.

Investor Impact: Investors holding securities newly added to ESM or moving to higher stages should expect stricter surveillance measures, which may include higher margin requirements, trade-for-trade settlement, or price bands. Conversely, investors in securities exiting ESM will benefit from normalized trading conditions.

Operational Impact: Brokers and trading members must update their systems to reflect the new ESM status of these securities and ensure compliance with applicable restrictions for each stage.

Impact Justification

Affects trading conditions for multiple securities through ESM framework changes, impacting investor access and liquidity for these stocks