Description

BSE announces additions, movements, and removals of securities in the Enhanced Surveillance Measure (ESM) Framework effective December 15, 2025.

Summary

BSE has announced comprehensive updates to the Enhanced Surveillance Measure (ESM) Framework effective December 15, 2025. The circular includes 5 securities being newly added to ESM, 1 security moving to higher ESM stage, 7 securities moving to lower ESM stages, and 25 securities exiting the ESM framework entirely. The ESM framework is designed to alert investors about securities exhibiting abnormal price movements or trading patterns.

Key Points

  • 5 securities newly shortlisted for ESM: Ador Multiproducts Ltd, Alps Industries Ltd, Gravity India Ltd, Rapid Multimodal Logistics Ltd, and Seshachal Technologies Ltd
  • 1 security (Empower India Ltd) moving to higher ESM stage indicating continued surveillance concerns
  • 7 securities moving to lower ESM stages showing improved compliance: BGIL Films & Technologies, Esha Media Research, Explicit Finance, Maitri Enterprises, RR Financial Consultants, Titan Intech, and Vaxfab Enterprises
  • 25 securities exiting ESM framework completely, including Coffee Day Enterprises, Kemistar Corporation, and Aplab Ltd
  • Changes apply to both main board and SME scrips (Rapid Multimodal Logistics, Focus Business Solution, and Qualitek Labs marked as SME scrips)
  • Some exiting securities will continue in Trade for Trade segment (Aris International and Iconik Sports marked with special conditions)

Regulatory Changes

The Enhanced Surveillance Measure (ESM) Framework continues to operate with a staged approach where securities can move between different surveillance levels based on compliance and market behavior. Securities in ESM are subject to additional monitoring and may face trading restrictions such as Trade-to-Trade settlement, reduced price bands, or additional margin requirements. The framework allows for both escalation to higher stages for continued non-compliance and de-escalation for improved behavior.

Compliance Requirements

  • Trading members must update their systems to reflect new ESM classifications effective December 15, 2025
  • Investors should be aware of enhanced surveillance conditions for newly added securities
  • Securities in ESM framework typically face additional margin requirements and trading restrictions
  • Market participants must comply with applicable price bands and settlement conditions for ESM securities
  • Companies listed in ESM should address underlying issues causing surveillance measures

Important Dates

  • Effective Date: December 15, 2025 - All ESM framework changes become effective
  • Circular Date: December 12, 2025

Impact Assessment

Market Impact: The addition of 5 new securities to ESM may result in reduced liquidity and increased volatility for these stocks as they face enhanced surveillance conditions. The 25 securities exiting ESM will likely see improved trading conditions and potentially better liquidity.

Investor Impact: Investors holding securities newly added to ESM should expect potential trading restrictions, higher margin requirements, and possible price band limitations. Those holding securities exiting ESM may benefit from normalized trading conditions.

Operational Impact: Brokers and trading members need to reconfigure their systems and risk management frameworks to accommodate the new ESM classifications. The movement of securities between ESM stages requires updated compliance monitoring and client disclosure processes.

Impact Justification

Affects trading conditions for 42 securities across ESM framework with changes in surveillance stages, impacting liquidity and trading restrictions for listed companies and investors.