Description
BSE updates Enhanced Surveillance Measure framework with 27 securities moving out, 3 moving to higher stages, and 11 moving to lower stages effective December 29, 2025.
Summary
BSE has issued updates to the Enhanced Surveillance Measure (ESM) Framework effective December 29, 2025. The circular details movements of securities across different ESM stages: 27 securities are exiting the ESM framework entirely, 3 securities are moving to higher ESM stages indicating increased surveillance, and 11 securities are moving to lower ESM stages reflecting improved compliance. No new securities are being added to the ESM framework.
Key Points
- No new securities added to ESM framework
- 3 securities moving to higher ESM stages: Esha Media Research Ltd, Mercury Trade Links Ltd, Naturo Indiabull Ltd (SME)
- 11 securities moving to lower ESM stages: Including Arunis Abode Ltd, Checkpoint Trends Ltd, Classic Filaments Ltd, and 8 others
- 27 securities exiting ESM framework: Including Emkay Global Financial Services Ltd, Virinchi Ltd, Intense Technologies Ltd, among others
- Changes effective from December 29, 2025
- Framework includes both mainboard and SME scrips
Regulatory Changes
The ESM framework continues to apply staged surveillance measures based on securities’ compliance and market behavior. Securities moving to higher stages face stricter surveillance and trading restrictions, while those moving to lower stages or exiting the framework experience relaxed measures. The circular references NSE alignment and notes that some securities move out due to inclusion in other frameworks (SMP Framework or IBC Framework).
Compliance Requirements
- Trading members must note the revised ESM stage classifications for affected securities
- Investors should be aware of surveillance stage changes affecting trading conditions
- Listed companies in higher ESM stages must maintain enhanced compliance and disclosure standards
- Additional margin requirements and trading restrictions may apply based on ESM stage
Important Dates
- Effective Date: December 29, 2025 - All ESM framework changes become applicable
- Circular Issue Date: December 26, 2025
Impact Assessment
Market Impact: The exit of 27 securities from ESM framework is positive for those stocks, potentially improving liquidity and reducing trading costs. The movement of 3 securities to higher stages indicates continued concerns requiring enhanced monitoring.
Trading Impact: Securities moving to higher ESM stages will face additional surveillance measures including possible price bands, trade-for-trade settlement, or higher margins. Those exiting or moving to lower stages will see relaxed trading conditions.
Investor Impact: Investors holding securities in higher ESM stages should exercise increased caution. The exit of 27 securities from ESM framework may improve investor confidence in those stocks. Notable exits include established companies like Emkay Global Financial Services Ltd and Intense Technologies Ltd.
Affected Securities Details
Moving to Higher ESM Stages (3 securities)
- Esha Media Research Ltd (531259)
- Mercury Trade Links Ltd (512415)
- Naturo Indiabull Ltd (543579) - SME Scrip
Moving to Lower ESM Stages (11 securities)
- Arunis Abode Ltd (526935)
- Checkpoint Trends Ltd (531099)
- Classic Filaments Ltd (540310)
- CMX Holdings Ltd (532217)
- GSB Finance Ltd (511543)
- Hindustan Appliances Ltd (531918)
- Jetmall Spices and Masala Ltd (543286) - SME Scrip
- Prerna Infrabuild Ltd (531802)
- Ramchandra Leasing & Finance Ltd (538540)
- Synthiko Foils Ltd (513307)
- UTL Industries Ltd (500426)
Exiting ESM Framework (27 securities)
Includes Abram Food Ltd, Anlon Healthcare Ltd, Emkay Global Financial Services Ltd, Intense Technologies Ltd, Virinchi Ltd, and 22 other securities.
Impact Justification
Affects 41 securities with changes in surveillance stages, impacting trading conditions and investor risk perception for these stocks