Description

BSE updates the list of securities under Enhanced Surveillance Measure (ESM) framework, adding 7 new securities and moving 3 securities to higher ESM stages effective December 03, 2025.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) framework effective December 03, 2025. Seven securities are newly shortlisted in the ESM framework, three existing securities will move to higher ESM stages, and no securities are moving out or to lower stages. The ESM framework imposes additional surveillance and trading restrictions on securities exhibiting unusual price movements or volatility.

Key Points

  • 7 new securities added to ESM framework: Bandaram Pharma Packtech Ltd, Coastal Corporation Ltd, M P K Steels (I) Ltd, Ramgopal Polytex Ltd, Rita Finance and Leasing Ltd, Trejhara Solutions Ltd, and Zinema Media And Entertainment Ltd
  • 3 securities moving to higher ESM stages: Milestone Furniture Ltd, Permanent Magnets Ltd, and Shikhar Consultants Ltd
  • No securities moving to lower ESM stages or exiting the framework
  • Changes effective from December 03, 2025
  • List includes both main board and SME securities
  • Consolidated list includes 22+ securities currently under ESM surveillance

Regulatory Changes

The ESM framework continues to apply staged surveillance measures on securities based on specified criteria. Securities under ESM face:

  • Additional disclosure requirements
  • 100% margin requirements for trading
  • Trade-for-trade settlement (no intraday squaring off)
  • Price bands restrictions
  • Enhanced reporting obligations

Securities can progress through multiple ESM stages (I, II, III, etc.) with increasingly stringent measures at higher stages.

Compliance Requirements

  • Investors and Traders: Must maintain 100% upfront margin for trading in ESM securities; no intraday trading allowed
  • Brokers: Must ensure clients are aware of ESM status and comply with margin requirements
  • Listed Companies: Must comply with enhanced disclosure norms and respond promptly to exchange queries
  • Market Participants: Should review positions in affected securities and adjust trading strategies accordingly

Important Dates

  • Effective Date: December 03, 2025 - All ESM changes come into effect
  • Circular Date: December 02, 2025

Impact Assessment

Market Impact: Medium - Affects liquidity and trading activity in 10 securities, with 7 new additions facing immediate trading restrictions. The move to higher ESM stages for 3 securities indicates continued concerns about price volatility or other surveillance parameters.

Investor Impact: High for holders of affected securities - Trading restrictions including 100% margin requirements and T+T settlement significantly impact liquidity and trading flexibility. Investors should reassess positions and be prepared for potential price volatility.

Operational Impact: Brokers and trading members must update systems to enforce ESM restrictions on newly added securities and adjusted stage requirements for existing ESM securities.

Impact Justification

Affects 10 securities with enhanced surveillance measures including trading restrictions. Critical for investors and traders in these securities but limited broader market impact.