Description
BSE circular announcing securities being added to ESM framework, moved to higher/lower ESM stages, and consolidated list of all securities under Enhanced Surveillance Measure effective December 10, 2025.
Summary
BSE has issued an update on the Enhanced Surveillance Measure (ESM) framework effective December 10, 2025. The circular identifies securities being newly included in ESM, those moving to higher or lower ESM stages, and provides a consolidated list of all securities currently under the ESM framework. Two new securities are being added to ESM Stage I, three securities are moving to higher ESM stages, and no securities are being removed from the framework.
Key Points
- 2 securities newly shortlisted for ESM framework: Kiran Syntex Ltd and Eurotex Industries and Exports Ltd
- 3 securities moving to higher ESM stages: Phaarmasia Ltd, Prima Industries Ltd, and Systematix Securities Ltd
- No securities moving to lower ESM stages
- No securities exiting the ESM framework
- Changes effective from December 10, 2025
- Consolidated list includes 28+ securities across ESM Stage I and Stage II
- Framework applies to both mainboard and SME scrips
Regulatory Changes
The Enhanced Surveillance Measure (ESM) framework is BSE’s mechanism to monitor securities displaying abnormal price movements or other concerning market behavior. Securities under ESM face additional surveillance including:
- Trade-for-trade settlement (no intraday trading)
- 100% upfront margin requirements
- Separate settlement series
- Progressive stages (I, II, etc.) with increasing restrictions
Securities can be promoted to higher stages if concerning patterns persist or demoted to lower stages if behavior normalizes.
Compliance Requirements
- Investors holding securities in ESM framework should be aware of trading restrictions
- All trades in ESM securities will be settled on a trade-for-trade basis
- 100% upfront margin required for buying these securities
- No intraday trading allowed in ESM securities
- Brokers must ensure clients understand ESM framework implications before trading
- Market participants should monitor ESM status changes regularly
Important Dates
- December 10, 2025: Effective date for all ESM framework changes announced in this circular
- Circular issued: December 9, 2025
Impact Assessment
Market Impact: Medium - The ESM framework affects liquidity and trading volumes in identified securities. Investors may face difficulty entering or exiting positions due to trade-for-trade settlement and margin requirements.
Investor Impact: Securities moving to higher ESM stages face increased scrutiny and trading restrictions, potentially leading to reduced liquidity and wider bid-ask spreads. Investors holding these stocks should monitor company developments closely.
Operational Impact: Brokers and trading members must update their systems to reflect new ESM classifications and ensure proper margin collection and settlement procedures are followed.
Risk Considerations: Securities placed under ESM typically exhibit higher volatility or irregular price movements. The framework serves as a warning mechanism for investors to exercise additional caution when trading these securities.
Securities Details
Newly Added to ESM Stage I:
- Kiran Syntex Ltd (530443, INE293D01017)
- Eurotex Industries and Exports Ltd (521014, INE022C01012)
Moving to Higher ESM Stages:
- Phaarmasia Ltd (523620, INE486I01016)
- Prima Industries Ltd (531246, INE723N01012)
- Systematix Securities Ltd (531432, INE07P301011)
Consolidated List Includes (partial): AAA Technologies Ltd, Aarey Drugs & Pharmaceuticals Ltd, ABM Knowledgeware Ltd, Abram Food Ltd, ADC India Communications Ltd, Adcon Capital Services Ltd, Adinath Textiles Ltd, Alan Scott Enterprises Ltd, Ambitious Plastomac Company Ltd, and many others across Stage I and Stage II classifications.
Impact Justification
Regular surveillance framework update affecting multiple securities with trading restrictions. Important for investors holding these stocks as it impacts liquidity and trading conditions.