Enhanced Surveillance Measure (ESM) - Updates to Securities List

Description

BSE updates the Enhanced Surveillance Measure framework with additions, stage movements, and consolidated list of securities under surveillance effective December 24, 2025.

Summary

BSE has issued updates to the Enhanced Surveillance Measure (ESM) framework effective December 24, 2025. The circular adds 3 new securities to ESM, moves 4 securities to higher ESM stages, and provides a consolidated list of 26+ securities currently under various ESM stages. No securities are exiting the ESM framework in this update.

Key Points

• 3 new securities shortlisted under ESM framework: Cian Healthcare Ltd (SME), Octaware Technologies Ltd (SME), and Prashant India Ltd
• 4 securities moving to higher ESM stages: Alps Industries Ltd, Seshachal Technologies Ltd, SSPN Finance Ltd, and Triton Corp Ltd
• No securities moving to lower ESM stages or exiting the framework
• Consolidated list includes securities across ESM Stage I and Stage II
• Multiple SME scrips included in the surveillance framework
• Changes effective from December 24, 2025

Regulatory Changes

The Enhanced Surveillance Measure framework continues BSE’s regulatory oversight of securities exhibiting unusual price movements, volatility, or other surveillance concerns. Securities under ESM typically face additional trading restrictions including:

• Trade-for-trade settlement (no intraday trading)
• 100% upfront margin requirements
• Additional disclosure requirements
• Staged approach with progressively stricter measures at higher stages

Compliance Requirements

• Trading members must ensure 100% upfront margin collection for ESM securities
• All trades in ESM securities will be settled on a trade-for-trade basis with no netting off
• Investors and brokers should note the ESM classification when trading affected securities
• Enhanced due diligence recommended for securities under ESM framework

Important Dates

• Effective Date: December 24, 2025 - ESM changes become applicable
• Circular Date: December 23, 2025

Impact Assessment

Market Impact: Medium - affects trading liquidity and accessibility for 7 securities (3 new additions and 4 stage upgrades)

Investor Impact: Investors holding or trading these securities will face stricter trading conditions with mandatory delivery-based trading and higher margin requirements. The ESM classification signals heightened regulatory concern and may impact investor sentiment.

Operational Impact: Brokers and trading members must update their systems to enforce trade-for-trade and margin requirements for newly added and upgraded securities.

Liquidity Impact: Securities under ESM typically experience reduced liquidity due to trading restrictions, potentially widening bid-ask spreads and reducing trading volumes.

Securities Added to ESM

Securities Moving to Higher ESM Stages

Impact Justification

Affects trading conditions for multiple securities under ESM framework with stage changes and new additions, impacting liquidity and trading restrictions for investors in these stocks