Description
BSE announces additions, removals, and stage changes for securities under the Enhanced Surveillance Measure (ESM) framework effective November 24, 2025, affecting 43 securities across various categories.
Summary
BSE has announced changes to the Enhanced Surveillance Measure (ESM) framework effective November 24, 2025. The circular identifies securities being newly added to ESM, those moving to higher or lower ESM stages, and those exiting the framework entirely. Two securities are being newly shortlisted for ESM, one is moving to a higher stage, 21 securities are moving to lower stages, and 22 securities are being removed from the ESM framework.
Key Points
- 2 securities newly shortlisted for Enhanced Surveillance Measure: AVI Polymers Ltd and Securekloud Technologies Ltd
- 1 security moving to higher ESM stage: UTL Industries Ltd
- 21 securities moving to lower ESM stages, indicating improved compliance or reduced surveillance concerns
- 22 securities exiting the ESM framework completely, including several SME scrips
- Changes effective from November 24, 2025
- ESM framework applies stage-wise restrictions based on volatility, trading patterns, and compliance issues
Regulatory Changes
The Enhanced Surveillance Measure (ESM) framework is a tiered surveillance mechanism where securities are placed under different stages based on market behavior and compliance parameters. Securities under ESM face additional trading restrictions such as trade-for-trade settlement, reduced price bands, and periodic call auctions. The movement between stages or entry/exit from the framework reflects changes in the risk profile of these securities.
Compliance Requirements
- Trading members must note the ESM status changes for affected securities
- Enhanced margin requirements and trade-for-trade settlement apply to securities under ESM
- Investors should be aware of liquidity constraints and settlement obligations for ESM securities
- Companies under ESM may face reputational impact and need to address underlying compliance or volatility issues
- Securities moving to higher ESM stages will face stricter trading conditions
Important Dates
- Effective Date: November 24, 2025 - All ESM framework changes become applicable
- Announcement Date: November 21, 2025
Impact Assessment
Market Impact: The addition of securities to ESM and movement to higher stages typically results in reduced liquidity, wider bid-ask spreads, and potential price volatility due to trade-for-trade settlement requirements. However, the exit of 22 securities from ESM is positive, indicating improved market behavior.
Investor Impact: Investors holding securities newly added to ESM or moved to higher stages should expect settlement obligations on a delivery basis with no intraday squaring off. Those holding securities exiting ESM will benefit from normalized trading conditions.
Company Impact: Companies entering or moving to higher ESM stages face reputational concerns and potential difficulty in capital raising. Companies exiting ESM benefit from improved market perception and trading flexibility.
Operational Impact: Brokers and trading members must update their systems to reflect the new ESM classifications and ensure appropriate risk management and margin collection for affected securities.
Detailed Lists
Annexure I - Securities Entering or Moving Within ESM
Part A - Newly Shortlisted (Effective Nov 24, 2025)
- AVI Polymers Ltd (539288, INE897N01014)
- Securekloud Technologies Ltd (512161, INE650K01021) - As per NSE
Moving to Higher ESM Stage
- UTL Industries Ltd (500426, INE184E01024)
Moving to Lower ESM Stage (21 securities) Including Aarey Drugs & Pharmaceuticals, Anka India, Arunjyoti Bio Ventures, Chambal Breweries & Distilleries, Elango Industries, Gujarat Investa, Inter Globe Finance, Mahaveer Infoway, Milestone Furniture (SME), Mirc Electronics, Rajasthan Petro Synthetics, Rotographics India, Shikhar Consultants, Shree Krishna Paper Mills, Shukra Pharmaceuticals, Systematix Securities, Titan Biotech, Tulasee Bio Ethanol, Universal Office Automation, Vashu Bhagnani Industries, and Women Networks.
Annexure II - Securities Exiting ESM
Part A - Moving Out of ESM Framework (Effective Nov 24, 2025) 22 securities including Achyut Healthcare (SME), Adcounty Media India (SME), Arman Holdings, Aryaman Capital Markets, Ashutosh Paper Mills, Auto Pins India, Avi Products India, Clinitech Laboratory (SME), CLN Energy (SME), Davin Sons Retail (SME), Dhanashree Electronics, Dr Lalchandani Labs (SME), Navigant Corporate Advisors (SME), NDL Ventures, Polymac Thermoformers (SME), Retina Paints (SME), Senthil Infotek, Sharma East India Hospitals, Sobhagya Mercantile, Soni Medicare, South Asian Enterprises, and Viji Finance.
Impact Justification
Medium importance as ESM framework changes affect trading conditions for specific securities but are routine surveillance actions. Medium impact on affected companies and their shareholders due to potential liquidity and price volatility implications.