Description

BSE updates the list of securities under Enhanced Surveillance Measure (ESM) framework, including new additions, stage changes, and exits effective December 19, 2025.

Summary

BSE has issued an update to the Enhanced Surveillance Measure (ESM) Framework effective December 19, 2025. The circular identifies securities being newly included in ESM, those moving to higher or lower ESM stages, and securities exiting the framework. Three new securities have been added to ESM Stage I, while two existing securities are being moved to higher ESM stages.

Key Points

  • 3 new securities shortlisted for inclusion in ESM Framework: Aadi Industries Ltd, Agri-Tech (India) Ltd, and Shish Industries Ltd
  • 2 securities moving to higher ESM stages: S.A.L. Steel Ltd and TVS Electronics Ltd
  • No securities moving to lower ESM stages
  • No securities exiting the ESM Framework in this update
  • Consolidated list includes 28+ securities across different ESM stages (Stage I and Stage II)
  • Changes take effect from December 19, 2025

Regulatory Changes

The Enhanced Surveillance Measure (ESM) Framework continues to operate as a risk management tool to monitor securities exhibiting abnormal price movements or other risk factors. Securities under ESM face additional trading restrictions and surveillance to protect investor interests.

Compliance Requirements

  • Trading members and investors must be aware of securities under ESM framework
  • Securities in ESM may be subject to: Trade-to-Trade (T2T) settlement, additional margins, price bands, or other restrictions
  • Market participants should exercise enhanced due diligence when trading ESM securities
  • Continuous monitoring of securities already in ESM framework is mandatory

Important Dates

  • Effective Date: December 19, 2025 - All ESM framework changes become applicable

Impact Assessment

Market Impact: Securities newly added to ESM or moved to higher stages may experience reduced liquidity due to additional trading restrictions. The framework aims to curb excessive speculation and protect retail investors from abnormal price volatility.

Investor Impact: Investors holding these securities should be aware of potential additional margin requirements and T2T settlement obligations. Enhanced surveillance may lead to improved price discovery and reduced manipulation risks over time.

Operational Impact: Brokers and trading members need to update their systems to reflect the new ESM classifications and ensure compliance with applicable restrictions for each security and stage.

Detailed Security Lists

New ESM Additions (Stage I)

  1. Aadi Industries Ltd (530027, INE563D01013)
  2. Agri-Tech (India) Ltd (537292, INE449G01018)
  3. Shish Industries Ltd (540693, INE145Y01023)

Moving to Higher ESM Stages

  1. S.A.L. Steel Ltd (532604, INE658G01014)
  2. TVS Electronics Ltd (532513, INE236G01019)

Consolidated ESM List Highlights

The consolidated list includes diverse sectors with companies like AAA Technologies, ABM Knowledgeware, Atlantaa Ltd, and various others across Stage I and Stage II classifications, indicating continued regulatory scrutiny across multiple market segments.

Impact Justification

Regular surveillance framework update affecting specific securities with potential trading restrictions; impacts investors holding or trading these stocks