Description

BSE updates Enhanced Surveillance Measure framework with 5 new securities added, 2 securities moving to higher stages, and consolidated list of securities under ESM stages.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) Framework effective December 11, 2025. Five securities are being newly shortlisted under ESM, two securities will move to higher ESM stages, and no securities are being moved to lower stages or removed from the framework. The circular includes a consolidated list of all securities currently under various ESM stages.

Key Points

  • 5 new securities added to ESM Framework: B.C. Power Controls Ltd (537766), Frontier Capital Ltd (508980), Kesoram Industries Ltd (502937), Maruti Interior Products Ltd (543464), and Transglobe Foods Ltd (519367)
  • 2 securities moving to higher ESM stages: Continental Controls Ltd (531460) and Rotographics (India) Ltd (539922)
  • No securities moving to lower ESM stages
  • No securities being removed from ESM Framework
  • Kesoram Industries marked as per NSE inclusion
  • Maruti Interior Products is an SME scrip
  • Consolidated list shows 26+ securities under ESM Stage I and Stage II surveillance

Regulatory Changes

The Enhanced Surveillance Measure framework is being updated to include additional securities that have triggered surveillance criteria. Securities under ESM are subject to additional surveillance mechanisms including:

  • Trade-for-trade settlement
  • Additional deposit/margin requirements
  • Reduced price bands
  • Enhanced disclosure requirements

Securities are placed in different ESM stages (Stage I, Stage II, etc.) based on severity of surveillance triggers, with higher stages having more stringent restrictions.

Compliance Requirements

  • Investors trading in ESM securities must comply with trade-for-trade settlement requirements
  • Brokers must collect additional margins/deposits as prescribed for ESM securities
  • Companies under ESM should ensure enhanced compliance and disclosure standards
  • Market participants should note the ESM stage classification for each security
  • Securities marked with special notations (SME scrip, as per NSE) require attention to cross-exchange alignment

Important Dates

  • Effective Date: December 11, 2025 - All ESM changes take effect from this date
  • Circular Date: December 10, 2025

Impact Assessment

Market Impact: Securities added to or moved to higher ESM stages will experience reduced liquidity due to trade-for-trade restrictions and additional margin requirements. This typically results in wider bid-ask spreads and reduced trading volumes.

Investor Impact: Investors holding these securities will face:

  • Compulsory delivery-based settlement (no intraday trading)
  • Higher margin requirements for open positions
  • Potential difficulty in exiting positions due to reduced liquidity
  • Increased price volatility due to restricted trading

Company Impact: Companies under ESM face reputational concerns and increased scrutiny. They should focus on:

  • Improving disclosure quality and timeliness
  • Addressing concerns that triggered ESM inclusion
  • Working towards removal from surveillance framework

Broker Impact: Brokers must update their risk management systems to enforce additional margins and trade-for-trade requirements for all ESM securities effective December 11, 2025.

Impact Justification

Enhanced Surveillance Measure directly impacts trading in affected securities with potential liquidity constraints and increased compliance requirements. Changes effective immediately impact multiple listed companies.