Description

BSE updates on securities being added to, moved within, or removed from the Enhanced Surveillance Measure (ESM) framework effective December 22, 2025.

Summary

BSE has announced comprehensive changes to the Enhanced Surveillance Measure (ESM) framework effective December 22, 2025. The circular details 7 securities being newly added to ESM, 1 security moving to higher ESM stage, 16 securities moving to lower ESM stages, and 19 securities being removed from the ESM framework entirely. The ESM framework is designed to alert investors about securities with unusual trading patterns and increased surveillance requirements.

Key Points

  • 7 securities newly shortlisted for ESM framework including Maan Aluminium Ltd, Mahamaya Lifesciences Ltd, Pankaj Polymers Ltd, Pioneer Investcorp Ltd, Ranjit Securities Ltd, Scintilla Commercial & Credit Ltd, and Yug Decor Ltd
  • Chambal Breweries & Distilleries Ltd will move to higher ESM stage indicating continued surveillance concerns
  • 16 securities will move to lower ESM stages showing improved trading patterns
  • 19 securities being removed from ESM framework completely
  • Changes include both main board and SME segment securities
  • Some securities marked with special symbols indicating alignment with NSE actions or SME status

Regulatory Changes

The Enhanced Surveillance Measure framework continues to be applied as a graded surveillance mechanism to alert investors about securities requiring heightened monitoring. Securities are placed in different ESM stages based on market surveillance parameters. Movement between stages reflects changing risk profiles:

  • Stage Escalation: Securities showing persistent concerns move to higher ESM stages with stricter surveillance
  • Stage De-escalation: Securities showing improvement in trading patterns move to lower ESM stages
  • Entry/Exit: New inclusions based on surveillance triggers and removals based on normalized trading behavior or transition to other frameworks (SMP or IBC)

Compliance Requirements

  • Trading members must ensure compliance with ESM framework requirements for affected securities
  • Investors should be aware of enhanced surveillance status when trading these securities
  • Additional margin requirements and trading restrictions may apply based on ESM stage
  • Members must monitor position limits and price bands applicable under ESM framework
  • Proper disclosure and investor awareness obligations for securities under surveillance

Important Dates

  • Effective Date: December 22, 2025 - All ESM framework changes come into effect
  • Circular Date: December 19, 2025

Impact Assessment

Market Impact: The changes affect 42 securities across different ESM categories, potentially impacting liquidity and trading activity in these stocks. Securities entering ESM or moving to higher stages may experience reduced liquidity due to additional surveillance measures and stricter margin requirements.

Investor Impact: Investors holding or trading these securities should be aware of enhanced surveillance status. ESM securities typically face higher margins, reduced position limits, and increased scrutiny. The 19 securities exiting ESM framework may see improved liquidity and reduced trading restrictions.

Operational Impact: Trading members need to update their surveillance systems, margin calculations, and risk management frameworks for all affected securities. Client communication regarding ESM status changes is essential for informed trading decisions.

Impact Justification

Affects trading conditions for 42 securities across ESM framework with additions, stage movements, and removals, impacting liquidity and investor participation