Description

BSE updates the Enhanced Surveillance Measure (ESM) framework with new securities added, securities moving between ESM stages, and consolidated list of all securities under ESM effective November 18, 2025.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) framework effective November 18, 2025. One new security (Bhagyanagar India Ltd) has been added to the ESM framework. Three securities are moving to higher ESM stages: Chandni Machines Ltd, Mrugesh Trading Ltd, and Soma Textiles & Industries Ltd. No securities are moving to lower stages or exiting the framework. The circular includes a consolidated list of 28+ securities currently under various ESM stages.

Key Points

  • 1 new security shortlisted for ESM: Bhagyanagar India Ltd (Scrip Code: 512296, ISIN: INE458B01036)
  • 3 securities moving to higher ESM stages: Chandni Machines Ltd, Mrugesh Trading Ltd, Soma Textiles & Industries Ltd
  • No securities moving to lower ESM stages
  • No securities exiting ESM framework
  • Consolidated list includes securities in ESM Stage I and Stage II
  • Framework includes both main board and SME scrips (marked with #)
  • Changes effective from November 18, 2025

Regulatory Changes

The ESM framework is a surveillance mechanism to monitor securities that witness unusual price movements and trading activity. Securities under ESM are subject to additional surveillance measures including:

  • Periodic call auctions
  • Price bands
  • Trade-for-trade settlement
  • Additional margins

Progressive stages (Stage I, Stage II, etc.) indicate escalating surveillance intensity based on continued unusual activity.

Compliance Requirements

  • Trading members must be aware of securities under ESM framework
  • Enhanced margin requirements applicable for ESM securities
  • Clients trading in ESM securities should be informed of applicable restrictions
  • Settlement on trade-for-trade basis for affected securities
  • Risk management systems must account for ESM surveillance parameters

Important Dates

  • Effective Date: November 18, 2025
  • Circular Date: November 17, 2025

Impact Assessment

Market Impact: Medium - The ESM framework affects liquidity and trading dynamics of listed securities. Investors in the 4 newly affected or escalated securities will face stricter trading conditions.

Operational Impact: Trading members need to update risk management systems and inform clients about changed surveillance status. Securities moving to higher ESM stages face more stringent trading restrictions.

Investor Impact: Investors holding or trading these securities will experience reduced liquidity, higher margins, and periodic call auction mechanisms. The consolidated list of 28+ securities provides transparency on all securities under enhanced surveillance.

Impact Justification

Regular surveillance framework update affecting multiple securities with trading restrictions. Important for investors and traders in listed securities but part of routine regulatory oversight.