Description
BSE updates Enhanced Surveillance Measure framework with securities being added, removed, and moved across ESM stages effective November 24, 2025.
Summary
BSE has announced changes to the Enhanced Surveillance Measure (ESM) framework effective November 24, 2025. The update includes addition of 2 securities to ESM, removal of 22 securities from ESM, movement of 1 security to higher ESM stage, and movement of 21 securities to lower ESM stages. ESM framework applies additional surveillance measures including higher margins, stricter price bands, and enhanced monitoring to securities exhibiting abnormal price movements or trading patterns.
Key Points
- 2 securities newly shortlisted under ESM: 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 trading behavior
- 22 securities exiting ESM framework completely
- Changes effective from November 24, 2025
- Framework applies staged surveillance with progressively stringent requirements
Securities Added to ESM (New Entries)
- AVI Polymers Ltd (Scrip Code: 539288, ISIN: INE897N01014)
- Securekloud Technologies Ltd (Scrip Code: 512161, ISIN: INE650K01021) - As per NSE
Securities Moving to Higher ESM Stage
- UTL Industries Ltd (Scrip Code: 500426, ISIN: INE184E01024)
Securities Moving to Lower ESM Stage (21 Securities)
Includes 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 & Industries, Shukra Pharmaceuticals, Systematix Securities, Titan Biotech, Tulasee Bio Ethanol, Universal Office Automation, Vashu Bhagnani Industries, and Women Networks.
Securities Exiting ESM Framework (22 Securities)
Includes 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 & Medical Research, Sobhagya Mercantile, Soni Medicare, South Asian Enterprises, and Viji Finance.
Regulatory Changes
ESM framework operates in stages with each stage imposing different levels of surveillance measures. Movement to higher stages typically involves increased margin requirements, tighter price bands, 100% upfront delivery requirements, and trade-for-trade settlement. Movement to lower stages indicates improved market behavior and reduced surveillance stringency. Exit from ESM indicates normalized trading patterns meeting regulatory parameters.
Compliance Requirements
- Brokers must update margin requirements for affected securities from November 24, 2025
- Trading members must ensure clients are aware of ESM status and associated restrictions
- Investors holding or trading these securities must comply with stage-specific margin and delivery requirements
- Market participants should note applicable circuit filters and price bands for ESM securities
- System updates required to reflect new ESM classifications
Important Dates
- Effective Date: November 24, 2025 - All ESM framework changes become applicable
Impact Assessment
High Impact on Affected Securities: Securities entering ESM face increased trading costs due to higher margins and delivery requirements, potentially reducing liquidity. Movement to higher ESM stage (UTL Industries) indicates deteriorating trading quality requiring enhanced monitoring. Securities moving to lower stages benefit from relaxed surveillance measures, potentially improving liquidity. Securities exiting ESM framework see complete removal of additional restrictions, normalizing trading conditions.
Market Participants: Investors and traders in these 64 securities must adjust to changed margin requirements, delivery obligations, and price movement restrictions. Institutional investors may face operational challenges with increased upfront delivery requirements. Risk management systems require updates to reflect new ESM classifications.
Broker-Dealers: Must update risk management systems, modify margin collection processes, and communicate changes to affected clients. Compliance teams need to ensure proper implementation of stage-specific requirements.
Impact Justification
ESM framework changes directly impact trading in 64 securities with altered surveillance stages affecting margin requirements, circuit filters, and trading restrictions for investors and brokers.