Description

BSE updates the list of securities under Enhanced Surveillance Measure (ESM) framework, adding 5 new securities, moving 2 to higher stages, and maintaining consolidated list of securities under surveillance.

Summary

BSE has issued an update to the Enhanced Surveillance Measure (ESM) Framework effective December 11, 2025. Five securities have been newly shortlisted for inclusion in ESM, including B.C. Power Controls Ltd, Frontier Capital Ltd, Kesoram Industries Ltd, Maruti Interior Products Ltd (SME), and Transglobe Foods Ltd. Additionally, two securities - Continental Controls Ltd and Rotographics (India) Ltd - will be moved to higher ESM stages. No securities are moving out of the ESM framework or being moved to lower stages.

Key Points

  • 5 securities newly added to Enhanced Surveillance Measure (ESM) framework
  • 2 securities moved to higher ESM stages (Continental Controls Ltd, Rotographics India Ltd)
  • No securities moving out of ESM framework
  • No securities being moved to lower ESM stages
  • Changes effective from December 11, 2025
  • Consolidated list includes 26+ securities under various ESM stages
  • Framework includes both main board and SME scrips

Newly Added Securities to ESM

Stage I ESM Securities (5 new additions):

  1. B.C. Power Controls Ltd (Scrip Code: 537766, ISIN: INE905P01028)
  2. Frontier Capital Ltd (Scrip Code: 508980, ISIN: INE977E01013)
  3. Kesoram Industries Ltd (Scrip Code: 502937, ISIN: INE087A01019) - As per NSE
  4. Maruti Interior Products Ltd (Scrip Code: 543464, ISIN: INE0JSJ01014) - SME Scrip
  5. Transglobe Foods Ltd (Scrip Code: 519367, ISIN: INE213P01027)

Securities Moving to Higher ESM Stages

  1. Continental Controls Ltd (Scrip Code: 531460, ISIN: INE545B01022)
  2. Rotographics (India) Ltd (Scrip Code: 539922, ISIN: INE364S01014)

Consolidated ESM List (Partial)

The consolidated list includes securities across different ESM stages:

Stage I Securities include:

  • AAA Technologies Ltd, Aarey Drugs & Pharmaceuticals Ltd, ABM Knowledgeware Ltd, Abram Food Ltd (SME), ADC India Communications Ltd, Adcon Capital Services Ltd, Adinath Textiles Ltd, Ameenji Rubber Ltd (SME), Amit Securities Ltd, Anand Rayons Ltd, Anirit Ventures Ltd, Anlon Healthcare Ltd, Apis India Ltd, Aplab Ltd, Aptus Pharma Ltd (SME), Arfin India Ltd, Arigato Universe Ltd, Aris International Ltd, Artificial Electronics Intelligent Material Ltd, Asarfi Hospital Ltd (SME), Ashnisha Industries Ltd, and others.

Stage II Securities include:

  • Alan Scott Enterprises Ltd, Ambitious Plastomac Company Ltd, Arunis Abode Ltd, Arunjyoti Bio Ventures Ltd

Regulatory Framework

The Enhanced Surveillance Measure (ESM) is a market surveillance mechanism implemented by BSE to enhance market integrity and safeguard investor interest. Securities are placed under ESM based on various criteria including price volatility, market capitalization, trading patterns, and corporate governance concerns.

ESM Framework Stages:

  • Securities can be placed in different stages (I, II, etc.) based on surveillance parameters
  • Higher stages typically involve stricter surveillance and trading restrictions
  • Movement between stages depends on ongoing assessment of risk parameters

Compliance Requirements

  • Trading Members: Must ensure compliance with ESM trading restrictions for affected securities
  • Investors: Should be aware that securities under ESM may have additional trading conditions including:
    • Trade-for-trade settlement (no intraday squaring off)
    • 100% upfront margin requirements
    • Price bands and other restrictions
  • Listed Companies: Should maintain compliance with listing requirements and disclosure norms to avoid ESM classification

Important Dates

  • Effective Date: December 11, 2025
  • Circular Date: December 10, 2025

Impact Assessment

Market Impact:

  • Liquidity in affected securities may be impacted due to enhanced surveillance measures
  • Trading restrictions under ESM framework may limit intraday trading opportunities
  • Investors holding these securities should be prepared for stricter margin requirements

Investor Impact:

  • Existing investors in the 5 newly added securities need to be aware of upcoming surveillance measures
  • Securities in higher ESM stages face more stringent monitoring and restrictions
  • ESM classification serves as a cautionary signal for investors regarding elevated risk levels

Operational Impact:

  • Brokers and trading members must update their systems to reflect ESM restrictions
  • Additional due diligence required for transactions in ESM securities
  • Risk management systems need to account for higher margin requirements on ESM stocks

Impact Justification

Affects trading in 5 newly added securities and 2 securities moving to higher ESM stages. Important for investors holding these stocks as ESM involves stricter surveillance and trading restrictions.