Description

BSE announces addition of 4 securities to ESM framework, movement of 10 securities to higher ESM stages, and provides consolidated list of all securities under enhanced surveillance.

Summary

BSE has issued an update to the Enhanced Surveillance Measure (ESM) Framework effective November 13, 2025. Four new securities are being added to the ESM framework, while 10 existing securities will be moved to higher ESM stages. No securities are moving to lower stages or exiting the framework. The circular includes a consolidated list of all securities currently under ESM.

Key Points

  • 4 securities newly shortlisted for ESM framework: Ashnisha Industries Ltd, Retaggio Industries Ltd (SME), Sarup Industries Ltd, and Twamev Construction And Infrastructure Ltd
  • 10 securities moving 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 moving to lower ESM stages
  • No securities exiting the ESM framework
  • Consolidated list includes 17+ securities across different ESM stages (partial list provided in annexure)

Regulatory Changes

Securities placed under ESM framework are subject to enhanced surveillance measures which typically include:

  • Additional disclosure requirements
  • Reduced price bands
  • Trade-for-trade settlement basis
  • 100% upfront margin requirements
  • No intraday trading allowed
  • Enhanced reporting obligations

Securities moving to higher ESM stages face progressively stricter surveillance measures.

Compliance Requirements

  • Investors trading in ESM securities must comply with additional margin requirements
  • All transactions in ESM securities will be on a delivery basis only
  • Brokers must ensure clients are aware of ESM status before executing trades
  • Market participants should review their positions in affected securities
  • Securities marked with * are as per NSE coordination
  • Securities marked with # are SME scrips subject to SME segment rules

Important Dates

  • Effective Date: November 13, 2025 - ESM changes become applicable

Impact Assessment

Market Impact: Medium - The addition of 4 new securities and upward movement of 10 securities to stricter ESM stages will reduce liquidity and increase trading costs for these stocks. The ESM framework is designed to protect investors from excessive speculation in volatile securities.

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

  • Reduced liquidity due to trade-for-trade settlement
  • Higher margin requirements (100% upfront)
  • No intraday trading opportunities
  • Potentially wider bid-ask spreads

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

Impact Justification

Affects 14 securities with new ESM placements or stage movements. ESM framework imposes additional trading restrictions and surveillance, impacting liquidity and investor participation for affected securities.