Description
BSE announces changes to Enhanced Surveillance Measure framework including 5 securities entering ESM, 2 moving to higher stages, 22 moving to lower stages, and 20 securities exiting ESM effective December 1, 2025.
Summary
BSE has announced updates to the Enhanced Surveillance Measure (ESM) framework effective December 1, 2025. The circular details movement of securities across different ESM stages, with 5 securities newly entering the framework, 2 moving to higher surveillance stages, 22 moving to lower stages, and 20 securities exiting the ESM framework entirely. The ESM framework is designed to alert investors about securities with unusual price movements or other concerns requiring enhanced surveillance.
Key Points
- 5 securities entering ESM framework: Cybele Industries Ltd, Manomay Tex India Ltd, Phaarmasia Ltd, Regal Entertainment & Consultants Ltd, Venus Remedies Ltd
- 2 securities moving to higher ESM stages: Alan Scott Enterprises Ltd, Emergent Industrial Solutions Ltd
- 22 securities moving to lower ESM stages including Anirit Ventures Ltd, Aplab Ltd, Bluegod Entertainment Ltd, Mcleod Russel India Ltd, and others
- 20 securities exiting ESM framework including Andhra Cements Ltd, India Homes Ltd, Oceanic Foods Ltd, Sadbhav Infrastructure Project Ltd, and others
- Changes effective from December 1, 2025
- One SME scrip (Sancode Technologies Ltd) included in the lower stage movement list
Regulatory Changes
The Enhanced Surveillance Measure framework applies graded surveillance based on various criteria including price volatility, trading patterns, and compliance concerns. Securities under ESM are subject to:
- Reduced price bands
- Trade-for-trade settlement (no intraday trading)
- 100% upfront margin requirements
- Additional disclosures and monitoring
- Progressive stages with increasing restrictions
Movement between stages occurs based on continuing assessment of market behavior and risk factors.
Compliance Requirements
- Trading members must ensure compliance with ESM framework requirements for affected securities
- Investors should be aware of enhanced surveillance status and associated trading restrictions
- Trade-for-trade settlement mandatory for securities under ESM
- 100% margin requirements applicable
- Members must provide appropriate risk disclosures to clients trading in ESM securities
Important Dates
- December 1, 2025: Effective date for all ESM framework changes including new entries, stage movements, and exits
Impact Assessment
Market Impact: The movement of securities across ESM stages affects trading liquidity and investor participation. Securities entering or moving to higher ESM stages face increased trading restrictions, potentially reducing liquidity. Conversely, securities moving to lower stages or exiting ESM will see relaxation of restrictions.
Investor Impact: Investors holding or trading affected securities must adapt to changed trading conditions including margin requirements and settlement mechanisms. Securities exiting ESM framework will benefit from normalized trading conditions.
Operational Impact: Brokers and trading members need to update their systems and risk management frameworks to reflect the new ESM classifications. Client communications regarding changed trading conditions will be necessary for affected securities.
Impact Justification
Affects trading conditions for 49 securities through ESM framework changes. Securities in ESM face additional surveillance including price bands, trade-for-trade settlement, and increased margin requirements, impacting liquidity and trading activity.