Description

BSE updates ESM framework with 5 new securities added, 2 securities moved to higher stages, and consolidated list of securities under enhanced surveillance.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) Framework effective December 31, 2025. Five new securities are being added to the ESM framework, including Axita Cotton Ltd, Coromandel Engineering Company Ltd, Croissance Ltd, Getalong Enterprise Ltd, and L. T. Elevator Ltd. Additionally, two existing securities (Aadi Industries Ltd and Shish Industries Ltd) are being moved to higher ESM stages. No securities are being removed from the ESM framework or moved to lower stages.

Key Points

  • 5 new securities shortlisted for ESM Framework from December 31, 2025
  • 2 securities (Aadi Industries Ltd and Shish Industries Ltd) moving to higher ESM stages
  • No securities moving out of ESM Framework
  • No securities moving to lower ESM stages
  • Consolidated list includes 26 securities across various ESM stages
  • Framework includes both main board and SME scrips

New Securities Added to ESM

Effective December 31, 2025:

  1. Axita Cotton Ltd (Scrip Code: 542285, ISIN: INE02EZ01022)
  2. Coromandel Engineering Company Ltd (Scrip Code: 533167, ISIN: INE312J01012)
  3. Croissance Ltd (Scrip Code: 531909, ISIN: INE587J01027)
  4. Getalong Enterprise Ltd - SME Scrip (Scrip Code: 543372, ISIN: INE0H1201020)
  5. L. T. Elevator Ltd - SME Scrip (Scrip Code: 544518, ISIN: INE0TJ801010)

Securities Moving to Higher ESM Stages

Effective December 31, 2025:

  1. Aadi Industries Ltd (Scrip Code: 530027, ISIN: INE563D01013) - Moving to Stage II
  2. Shish Industries Ltd (Scrip Code: 540693, ISIN: INE145Y01023)

Regulatory Changes

The ESM Framework is designed to alert investors about securities exhibiting abnormal price movements or other concerning market behavior. Securities under ESM are subject to:

  • Enhanced disclosure requirements
  • Additional trading restrictions
  • Increased monitoring and surveillance
  • Potential trade-for-trade settlement
  • Progressive stages with escalating restrictions

Compliance Requirements

  • Investors trading in ESM securities must be aware of the enhanced surveillance status
  • Trading members must ensure compliance with ESM-specific requirements
  • Enhanced due diligence required for transactions in listed securities
  • Investors should exercise caution when trading in ESM securities

Important Dates

  • Effective Date: December 31, 2025 - All ESM changes become applicable

Impact Assessment

Market Impact:

  • Trading in 5 newly added securities will face enhanced surveillance and restrictions
  • Existing ESM securities moving to higher stages will face stricter monitoring
  • Investors may experience reduced liquidity in affected securities
  • Heightened regulatory scrutiny on price movements and trading patterns

Investor Impact:

  • Higher risk perception for securities under ESM
  • Potential for trade-for-trade settlement requirements
  • Need for increased caution and due diligence
  • Limited arbitrage and intraday trading opportunities

Operational Impact:

  • Trading members must update systems to reflect ESM status changes
  • Enhanced reporting and monitoring requirements for brokers
  • Compliance teams need to track ESM securities and stage changes

Impact Justification

ESM placement significantly impacts trading in affected securities with additional restrictions and monitoring. Changes affect 7 securities with potential trading limitations for investors.