Description

BSE circular detailing securities being added to, moved within, or removed from the Enhanced Surveillance Measure (ESM) framework with changes effective from December 17, 2025.

Summary

BSE has issued an update to the Enhanced Surveillance Measure (ESM) framework effective December 17, 2025. The circular identifies three securities being newly shortlisted into ESM Stage I: Amkay Products Ltd, Space Incubatrics Technologies Ltd, and TV Vision Ltd. Additionally, five securities will continue in ESM but move to higher stages: Anirit Ventures Ltd, Hiliks Technologies Ltd, Khandelwal Extractions Ltd, Mahaveer Infoway Ltd, and Prozone Realty Ltd. No securities are moving to lower ESM stages or exiting the framework. The circular also provides a consolidated list of all securities currently under ESM with their respective stages.

Key Points

  • 3 securities newly added to ESM Stage I effective December 17, 2025
  • 5 securities being moved to higher ESM stages within the framework
  • No securities moving to lower ESM stages
  • No securities exiting the ESM framework in this update
  • Consolidated list includes at least 25 securities under various ESM stages
  • ESM framework applies additional surveillance and trading restrictions to securities showing excessive volatility or other concerns

Regulatory Changes

The Enhanced Surveillance Measure (ESM) framework continues to operate as a surveillance mechanism for securities that exhibit abnormal price movements or trading patterns. Securities under ESM are subject to additional restrictions including:

  • Trade-for-trade settlement (no intraday squaring off)
  • 100% upfront margin requirements
  • Stage-wise progression based on continued surveillance triggers
  • Enhanced disclosure requirements

Securities can move between ESM stages (I, II, III, IV, etc.) based on their trading behavior and compliance with surveillance criteria.

Compliance Requirements

  • Market participants must be aware of ESM securities before trading
  • Brokers must collect 100% upfront margin for ESM securities
  • All trades in ESM securities must be settled on a trade-for-trade basis
  • No intraday trading permitted in ESM securities
  • Enhanced position monitoring required for ESM securities

Important Dates

  • Effective Date: December 17, 2025 - All ESM changes become applicable
  • Circular Date: December 16, 2025

Impact Assessment

Market Impact: The addition of new securities to ESM and movement to higher stages will result in reduced liquidity and trading activity in affected stocks. The trade-for-trade mechanism and 100% margin requirements typically discourage speculative trading.

Investor Impact: Investors holding or trading these securities face increased margin requirements and inability to perform intraday trading. This may lead to reduced trading volumes and potentially wider bid-ask spreads.

Operational Impact: Brokers and trading members must update their risk management systems to reflect the new ESM classifications and ensure compliance with enhanced margin and settlement requirements.

Securities Details

Newly Added to ESM Stage I:

  1. Amkay Products Ltd (544169, INE0QSB01016) - SME Scrip
  2. Space Incubatrics Technologies Ltd (541890, INE797Z01010)
  3. TV Vision Ltd (540083, INE871L01013)

Moving to Higher ESM Stages:

  1. Anirit Ventures Ltd (530705, INE161F01011) - Moving to Stage II
  2. Hiliks Technologies Ltd (539697, INE966Q01010) - Moving to higher stage
  3. Khandelwal Extractions Ltd (519064, INE687W01010) - Moving to higher stage
  4. Mahaveer Infoway Ltd (539383, INE019D01016) - Moving to higher stage
  5. Prozone Realty Ltd (534675, INE195N01013) - Moving to higher stage

Impact Justification

Affects trading conditions for specific securities under enhanced surveillance, with 3 new additions and 5 securities moving to higher ESM stages, impacting liquidity and trading parameters