Description

Updates to securities under Enhanced Surveillance Measure framework effective January 1, 2026, including new additions, stage changes, and consolidated list of all securities under ESM.

Summary

BSE has announced updates to the Enhanced Surveillance Measure (ESM) Framework effective January 1, 2026. Three new securities will be added to ESM Stage I, three existing securities will move to higher ESM stages, and no securities are being removed from the framework. The circular provides a consolidated list of 27+ securities currently under various ESM stages with associated trading restrictions.

Key Points

  • 3 securities newly shortlisted for ESM Framework: Nagpur Power & Industries Ltd, Shiva Granito Export Ltd (SME), and Shree Metalloys Ltd
  • 3 securities moving to higher ESM stages: Natura Hue Chem Ltd, Norben Tea & Exports Ltd, and Soma Textiles & Industries Ltd
  • No securities moving to lower ESM stages
  • No securities being removed from ESM Framework
  • Consolidated list includes securities in ESM Stage I and Stage II
  • Changes effective from January 1, 2026

Regulatory Changes

The Enhanced Surveillance Measure framework applies graduated surveillance to securities based on risk parameters. Securities under ESM are subject to:

  • Additional disclosure requirements
  • Potential price bands or trading restrictions
  • Increased monitoring by the exchange
  • Possible Trade-for-Trade (T2T) segment placement

Securities can progress through multiple ESM stages based on continued surveillance concerns or improved compliance.

Compliance Requirements

  • Listed companies under ESM must comply with enhanced disclosure norms
  • Investors should be aware that ESM securities may have trading restrictions
  • Brokers must ensure clients are informed about ESM status of securities
  • Companies must work towards addressing surveillance concerns to exit the framework

Important Dates

  • Effective Date: January 1, 2026 - All ESM changes become applicable

Impact Assessment

Market Impact: Securities under ESM typically experience reduced liquidity due to heightened surveillance and potential trading restrictions. The addition of three new securities and upgrade of three others to higher stages indicates ongoing compliance or volatility concerns.

Investor Impact: Investors holding these securities should note potential liquidity constraints and increased scrutiny. ESM placement often signals regulatory concerns that may affect stock performance.

Trading Impact: Securities in higher ESM stages may face additional restrictions including mandatory delivery-based trading, reduced price bands, or increased margin requirements, making short-term trading more challenging.

Impact Justification

Affects multiple securities under surveillance framework with trading restrictions; impacts investors holding these stocks but represents routine surveillance updates rather than emergency measures.