Enhanced Surveillance Measure (ESM) - Securities List Updates Effective November 13, 2025

Description

BSE updates the Enhanced Surveillance Measure (ESM) framework with 4 new securities added, 10 securities moved to higher ESM stages, and consolidated list of securities under various ESM stages.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) framework effective November 13, 2025. The circular adds 4 new securities to the ESM framework, moves 10 existing securities to higher ESM stages, and provides a consolidated list of securities currently under ESM surveillance. No securities are being moved to lower stages or removed from the framework at this time.

Key Points

• 4 new securities shortlisted for inclusion in ESM Framework: Ashnisha Industries Ltd, Retaggio Industries Ltd (SME), Sarup Industries Ltd, and Twamev Construction And Infrastructure Ltd
• 10 securities to be moved to higher ESM stages including Arunis Abode Ltd, Bafna Pharmaceuticals Ltd, Classic Filaments Ltd, CMX Holdings Ltd, Ekennis Software Service Ltd (SME), Hypersoft Technologies Ltd, Indian Link Chain Manufacturers Ltd, Kavveri Defence & Wireless Technologies Ltd, Mahamaya Steel Industries Ltd, and Ramchandra Leasing & Finance Ltd
• No securities are being moved to lower ESM stages
• No securities are exiting the ESM framework
• Consolidated list includes 17 securities with their respective ESM stages (Stage I and Stage II)
• ESM framework applies surveillance measures to securities showing price volatility, abnormal trading patterns, or compliance concerns

Regulatory Changes

The Enhanced Surveillance Measure (ESM) framework is BSE’s surveillance mechanism to address concerns in securities that witness abnormal price rise not commensurate with financial health and fundamentals. Securities under ESM are subject to additional surveillance including:

• Additional Surveillance Deposit (ASD) requirements
• Trading restrictions (100% upfront margin, no intraday leverage)
• Price bands limitations
• Periodic review for stage movement based on market behavior

Movement to higher ESM stages typically indicates continued concerns requiring intensified surveillance measures.

Compliance Requirements

• Brokers and Trading Members: Must ensure collection of 100% upfront margins for trades in ESM securities and comply with Additional Surveillance Deposit requirements as per applicable ESM stage
• Investors: Required to provide full upfront margin for purchasing ESM securities; no intraday trading or leverage allowed
• Listed Companies: Companies whose securities are under ESM should ensure timely compliance with disclosure requirements and address concerns leading to ESM classification
• All market participants must take note of the updated ESM list and adjust trading/risk management systems accordingly

Important Dates

• Effective Date: November 13, 2025 - All ESM changes become effective from this date
• Circular Date: November 12, 2025

Impact Assessment

Market Impact: Medium - The addition of new securities and stage escalations affect liquidity and trading dynamics for these specific stocks. Investors in these 14 affected securities will face stricter trading conditions.

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

• Reduced liquidity due to higher margin requirements
• Elimination of intraday trading opportunities
• Potential difficulty in position building due to 100% upfront margin
• Increased cost of carry for positions

Operational Impact: Brokers and trading platforms must update their systems to enforce ESM trading restrictions, margin collection, and surveillance deposit requirements for all affected securities.

Compliance Signal: Securities moving to higher ESM stages indicate persistent market concerns despite existing surveillance, suggesting heightened regulatory scrutiny and potential for further restrictive measures if concerns continue.

Securities Details

Annexure I - New ESM Securities (Effective Nov 13, 2025)

Securities Moving to Higher ESM Stages

Impact Justification

ESM framework changes affect trading conditions for specific securities with increased surveillance due to market volatility or compliance concerns. Direct impact limited to listed securities and their investors, but signals regulatory monitoring intensity.