Description

BSE updates the list of securities under Enhanced Surveillance Measure (ESM) framework, adding new securities, moving some to higher stages, and providing consolidated list of all ESM securities.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) framework effective December 12, 2025. Two new securities have been added to ESM Stage I (Hemo Organic Ltd and LGT Business Connextions Ltd). Three existing securities (Bluegod Entertainment Ltd, Ramgopal Polytex Ltd, and Wardwizard Foods and Beverages Ltd) will be moved to higher ESM stages. No securities are moving to lower stages or exiting the ESM framework. A consolidated list of 28+ securities currently under ESM has been provided.

Key Points

  • 2 new securities added to ESM Stage I framework
  • 3 securities moved to higher ESM stages due to continued surveillance concerns
  • No securities moved to lower ESM stages
  • No securities exiting ESM framework in this update
  • ESM framework involves additional surveillance and trading restrictions
  • Changes effective from December 12, 2025
  • Consolidated list includes securities across ESM Stage I and Stage II

New Securities Added to ESM

Stage I Additions:

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

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)

Regulatory Changes

Securities under ESM framework are subject to:

  • Enhanced monitoring and surveillance by the exchange
  • Potential trading restrictions including trade-for-trade segments
  • Additional reporting and disclosure requirements
  • Price bands and position limits may apply
  • Investors should exercise heightened caution when trading these securities

Compliance Requirements

  • Trading members must ensure compliance with ESM framework provisions
  • Enhanced disclosure requirements for transactions in ESM securities
  • Clients trading in ESM securities should be informed of applicable restrictions
  • Settlement obligations must be met for trade-for-trade segments
  • Members should monitor and report any irregularities

Important Dates

  • Effective Date: December 12, 2025
  • All changes to ESM classifications take effect from market opening on this date

Impact Assessment

Market Impact: Securities placed under ESM framework typically experience reduced liquidity due to trading restrictions. Investors holding these securities may face challenges in executing trades. The framework is designed to protect investor interests by flagging securities with unusual price movements or other concerns.

Investor Impact: Existing shareholders of newly added securities should be aware of potential liquidity constraints. Enhanced surveillance indicates heightened regulatory scrutiny. Investors should conduct thorough due diligence before trading in ESM securities.

Operational Impact: Trading members need to update their systems and client communications regarding ESM securities. Additional monitoring and compliance procedures must be implemented for affected scrips.

Consolidated ESM List Highlights

The circular provides a consolidated list of securities under ESM framework including:

  • AAA Technologies Ltd (Stage I)
  • Aarey Drugs & Pharmaceuticals Ltd (Stage I)
  • ABM Knowledgeware Ltd (Stage I)
  • Multiple other securities across Stage I and Stage II
  • Both mainboard and SME securities are included in the framework

Impact Justification

Affects specific securities placed under enhanced surveillance with trading restrictions. Important for investors holding or trading these stocks but limited to a small subset of listed securities.