Description

BSE announces changes to Enhanced Surveillance Measure framework effective November 17, 2025, including 6 new securities entering ESM, movements across stages, and 24 securities exiting the framework.

Summary

BSE has announced comprehensive changes to its Enhanced Surveillance Measure (ESM) Framework effective November 17, 2025. The circular details three categories of changes: 6 securities newly entering ESM, 1 security moving to higher stage ESM, 14 securities moving to lower stage ESM, and 24 securities exiting the framework entirely. The ESM framework is designed to alert investors about securities witnessing unusual price movements and protect investor interests through enhanced surveillance and trading restrictions.

Key Points

  • 6 new securities entering ESM framework: Adinath Textiles Ltd, Gretex Corporate Services Ltd, Shahi Shipping Ltd, Suryo Foods & Industries Ltd, Svarnim Trade Udyog Ltd, U. Y. Fincorp Ltd
  • 1 security moving to higher stage ESM: Bisil Plast Ltd
  • 14 securities moving to lower stage ESM, indicating improved trading behavior
  • 24 securities exiting ESM framework completely, returning to normal trading conditions
  • Changes effective from November 17, 2025
  • Framework includes both mainboard and SME scrips

Regulatory Changes

The Enhanced Surveillance Measure framework operates on a stage-based system where securities are placed under varying levels of surveillance based on price movements, volatility, and trading patterns. Securities can progress to higher stages (increased restrictions) or lower stages (reduced restrictions) based on their trading behavior. The framework applies additional compliance requirements, trading restrictions, and investor disclosures for securities under surveillance.

Compliance Requirements

  • Market participants must be aware of ESM classification changes for affected securities
  • Securities entering ESM may be subject to additional margin requirements, price bands, or trading restrictions
  • Investors should exercise enhanced due diligence when trading ESM securities
  • Listed companies under ESM should ensure timely disclosures and compliance with surveillance requirements
  • Brokers and trading members must update their systems to reflect new ESM classifications

Important Dates

  • Effective Date: November 17, 2025 - All ESM framework changes come into effect
  • Circular Date: November 14, 2025

Impact Assessment

Market Impact: Medium - The changes affect 45+ securities across various market segments. Securities entering ESM or moving to higher stages may experience increased volatility, reduced liquidity, and higher transaction costs due to additional margins and restrictions. Conversely, 24 securities exiting ESM will benefit from normalized trading conditions and potentially improved liquidity.

Investor Impact: Investors holding positions in newly added ESM securities should prepare for additional margin requirements and trading restrictions. Those holding securities exiting ESM will benefit from relaxed trading conditions. The framework serves as a cautionary signal for securities under surveillance.

Operational Impact: Brokers and trading systems must update surveillance classifications, margin requirements, and risk management systems to reflect the changes effective November 17, 2025.

Impact Justification

Regular periodic update affecting multiple securities under surveillance framework. Impacts trading conditions for 45+ securities with 6 new entries, stage movements, and 24 exits. Significant for affected companies and their investors.