Description

BSE updates the Enhanced Surveillance Measure framework with 4 new securities added to ESM, 2 securities moved to higher stages, and consolidated list of all securities under surveillance.

Summary

BSE has issued an update to the Enhanced Surveillance Measure (ESM) Framework effective December 4, 2025. Four securities are newly added to ESM Stage I: Arigato Universe Ltd, Parmeshwar Metal Ltd (SME), Pro Fin Capital Services Ltd, and TVS Electronics Ltd. Two securities (IEL Ltd and SPEL Semiconductor Ltd) will be moved to higher ESM stages. No securities are moving to lower stages or exiting the ESM framework. The circular includes a consolidated list of all securities currently under ESM with their respective stage classifications.

Key Points

  • 4 new securities shortlisted for ESM Stage I framework
  • 2 existing securities escalated to higher ESM stages (IEL Ltd and SPEL Semiconductor Ltd)
  • No securities moved to lower ESM stages
  • No securities exiting ESM framework in this update
  • Changes effective from December 4, 2025
  • Consolidated list includes 26+ securities across ESM Stage I and Stage II
  • One SME scrip (Parmeshwar Metal Ltd) included in new additions

Regulatory Changes

The Enhanced Surveillance Measure framework continues to monitor securities based on established surveillance criteria. Securities in ESM are subject to additional monitoring and trading restrictions based on their stage classification. The framework operates in multiple stages with progressively stricter surveillance as securities move to higher stages.

Compliance Requirements

  • Trading members must be aware of securities under ESM and applicable restrictions
  • Investors should note that ESM securities may have additional margin requirements
  • Securities in ESM framework are typically subject to trade-for-trade settlement
  • Price bands and position limits may be more restrictive for ESM securities
  • Market participants must comply with enhanced disclosure and monitoring requirements

Important Dates

  • Effective Date: December 4, 2025 - All ESM changes become applicable

Impact Assessment

Market Impact: Securities entering or moving to higher ESM stages typically experience reduced liquidity due to trade-for-trade settlement and stricter surveillance. The inclusion of TVS Electronics Ltd, a relatively well-known company, indicates surveillance concerns that may affect investor confidence.

Trading Impact: The 4 newly added securities will face enhanced surveillance including potential trade-for-trade settlement, additional margin requirements, and increased monitoring. The 2 securities moving to higher stages will face even stricter restrictions.

Investor Impact: Existing investors in these securities should expect reduced liquidity, higher transaction costs, and potential difficulty in exiting positions. New investors should exercise additional caution and conduct thorough due diligence before investing in ESM securities.

Securities Added to ESM Stage I (Effective Dec 4, 2025)

  1. Arigato Universe Ltd (530267, INE021N01011)
  2. Parmeshwar Metal Ltd# (544330, INE0QQJ01021) - SME Scrip
  3. Pro Fin Capital Services Ltd (511557, INE732K01027)
  4. TVS Electronics Ltd (532513, INE236G01019)

Securities Moving to Higher ESM Stages

  1. IEL Ltd (524614, INE056E01024)
  2. SPEL Semiconductor Ltd (517166, INE252A01019)

Impact Justification

Affects trading in specific securities under enhanced surveillance. Important for investors holding these stocks as ESM imposes additional restrictions, but impact is limited to listed securities only.