Description

BSE announces changes to Enhanced Surveillance Measure framework including 2 new securities added, 3 securities moving to higher stages, and consolidated list of securities under ESM stages.

Summary

BSE has issued an update to the Enhanced Surveillance Measure (ESM) Framework effective December 12, 2025. Two new securities have been added to ESM: Hemo Organic Ltd (524590) and LGT Business Connextions Ltd (544489). Three existing securities will move to higher ESM stages: Bluegod Entertainment Ltd, Ramgopal Polytex Ltd, and Wardwizard Foods and Beverages Ltd. No securities are moving to lower stages or exiting the ESM framework. The circular includes a consolidated list of all securities currently under ESM surveillance across different stages.

Key Points

  • 2 securities newly shortlisted under ESM framework effective December 12, 2025
  • 3 securities moving to higher ESM stages (increased surveillance)
  • No securities moving to lower ESM stages
  • No securities exiting ESM framework in this update
  • ESM framework includes multiple stages (I, II) with progressively stricter surveillance measures
  • Consolidated list includes 28+ securities under various ESM stages
  • Some securities marked with special indicators (SME scrips marked with #, NSE-based with *)

Regulatory Changes

The Enhanced Surveillance Measure framework continues with periodic review and adjustments. Securities are evaluated based on surveillance criteria and moved between stages or newly included based on market activity, volatility, and compliance parameters. The framework applies trade-for-trade settlement and additional surveillance mechanisms to securities exhibiting abnormal price movements or other risk indicators.

Compliance Requirements

  • Trading members must comply with ESM restrictions on affected securities
  • Securities under ESM are subject to trade-for-trade settlement (no intraday squaring off)
  • Additional margin requirements may apply based on ESM stage
  • Market participants must monitor ESM status changes for their holdings
  • Brokers must inform clients about ESM status of securities

Important Dates

  • Effective Date: December 12, 2025 - All ESM changes become applicable
  • Circular issued on December 11, 2025

Impact Assessment

Market Impact: Limited impact affecting specific securities under surveillance. The ESM framework restricts intraday trading and increases margin requirements, potentially reducing liquidity and trading volumes in affected securities.

Operational Impact: Brokers and trading members must update systems to reflect new ESM classifications. Investors holding affected securities face trading restrictions with mandatory delivery-based settlement.

Investor Impact: Shareholders of newly added or upgraded ESM securities will experience reduced liquidity and higher transaction costs. Long-term investors are less affected than short-term traders. Movement to higher ESM stages signals regulatory concerns about price volatility or compliance issues.

Securities Newly Added to ESM

  1. Hemo Organic Ltd (Scrip Code: 524590, ISIN: INE422G01015) - ESM Stage I
  2. LGT Business Connextions Ltd (Scrip Code: 544489, ISIN: INE191201016) - ESM Stage I (SME)

Securities Moving to Higher ESM Stages

  1. Bluegod Entertainment Ltd (Scrip Code: 539175, ISIN: INE924N01024)
  2. Ramgopal Polytex Ltd (Scrip Code: 514223, ISIN: INE410D01017)
  3. Wardwizard Foods and Beverages Ltd (Scrip Code: 539132, ISIN: INE761D01021)

Impact Justification

Routine surveillance measure affecting limited number of securities; impacts trading conditions for 5 securities with stage changes effective December 12, 2025