Enhanced Surveillance Measure (ESM) - Securities Movement Effective December 16, 2025

Description

BSE announces addition of 4 new securities to ESM framework, movement of 1 security to higher stage, and updated consolidated list of securities under enhanced surveillance.

Summary

BSE has announced updates to the Enhanced Surveillance Measure (ESM) Framework effective December 16, 2025. Four securities are being newly added to the ESM framework, one security will move to a higher ESM stage, and no securities are being removed or moved to lower stages. The consolidated list includes 28+ securities across various ESM stages.

Key Points

• 4 new securities added to ESM framework: Brijlaxmi Leasing & Finance Ltd (532113), Ishaan Infrastructures and Shelters Ltd (540134), Rapicut Carbides Ltd (500360), and Shentracon Chemicals Ltd (530757)
• Transchem Ltd (500422) will move to a higher ESM stage
• No securities are moving out of ESM framework
• No securities are being moved to lower ESM stages
• Consolidated list shows securities in ESM Stage I and Stage II
• Framework aligned with NSE surveillance measures

Regulatory Changes

The Enhanced Surveillance Measure (ESM) Framework continues to be applied to identify and monitor securities that exhibit abnormal price movements or trading patterns. Securities are classified into different stages (Stage I, Stage II, etc.) based on surveillance parameters, with higher stages indicating stricter monitoring and trading restrictions.

Compliance Requirements

• Securities in ESM framework are subject to trade-for-trade settlement (no intraday trading)
• Additional surveillance deposit requirements may apply
• Price bands may be reduced for securities under ESM
• Investors must be aware of the enhanced surveillance status before trading
• Brokers must inform clients about ESM securities and associated restrictions

Important Dates

• Effective Date: December 16, 2025 - All changes to ESM framework become applicable

Impact Assessment

Market Impact: Moderate impact on liquidity for the affected securities as ESM framework imposes trade-for-trade settlement and may reduce speculative trading. Investors holding these securities will face restrictions on intraday trading.

Investor Impact: Existing and prospective investors in these securities need to be aware of enhanced surveillance conditions, which may affect trading strategies and require additional margin/deposit requirements.

Operational Impact: Trading members must update their systems to reflect the new ESM classifications and ensure proper client communication regarding trading restrictions on these securities.

Affected Securities - New Additions

Securities Moving to Higher Stage

Impact Justification

Affects trading conditions for specific securities under enhanced surveillance; impacts investors holding these stocks through additional compliance requirements and trading restrictions