Description

BSE updates Enhanced Surveillance Measure framework with new securities entering ESM, existing securities moving to higher/lower stages, effective January 1, 2026.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) Framework effective January 1, 2026. Three new securities are being added to ESM Stage I, three existing securities are being moved to higher ESM stages, and no securities are being moved to lower stages or removed from the framework. The consolidated list includes 27+ securities across various ESM stages.

Key Points

  • 3 new securities shortlisted for ESM Framework (Stage I): Nagpur Power & Industries Ltd, Shiva Granito Export Ltd (SME), Shree Metalloys Ltd
  • 3 securities moving to higher ESM stages: Natura Hue Chem Ltd, Norben Tea & Exports Ltd, Soma Textiles & Industries Ltd
  • No securities moving to lower ESM stages
  • No securities exiting ESM Framework
  • Consolidated list shows securities in ESM Stage I and Stage II
  • SME scrips marked with (#) symbol

Regulatory Changes

The Enhanced Surveillance Measure framework continues with stage-based classification. Securities are categorized into different ESM stages based on surveillance parameters. The framework includes provisions for:

  • Securities entering ESM for the first time (typically Stage I)
  • Upward movement to higher stages for securities showing continued surveillance concerns
  • Downward movement to lower stages for improving securities
  • Exit from ESM framework under specific conditions (inclusion in SMP Framework, IBC Framework, or meeting exit criteria)

Compliance Requirements

  • Trading members must be aware of securities under ESM and associated trading restrictions
  • Investors trading in ESM securities should understand the enhanced surveillance implications
  • Securities marked for Trade for Trade segment continue with applicable restrictions
  • Market participants must comply with any additional margin or position limit requirements for ESM securities

Important Dates

  • Effective Date: January 1, 2026 - ESM framework changes become applicable
  • Circular Date: December 31, 2025

Impact Assessment

Trading Impact: Securities entering or moving to higher ESM stages may face increased trading restrictions, higher margins, and reduced liquidity. The Trade for Trade requirement significantly impacts intraday trading.

Investor Impact: Existing investors in affected securities should monitor their positions carefully. ESM classification signals heightened regulatory scrutiny due to price volatility, volume variations, or other surveillance concerns.

Market Impact: Limited impact on broader market as only specific securities are affected. The consolidated list of 27+ securities represents a small fraction of total listed securities on BSE.

Securities Details

New Entrants to ESM (Stage I)

  1. Nagpur Power & Industries Ltd (532362, INE099E01016)
  2. Shiva Granito Export Ltd# (540072, INE191V01015)
  3. Shree Metalloys Ltd (531962, INE914B01012)

Moving to Higher ESM Stage

  1. Natura Hue Chem Ltd (531834, INE487B01019)
  2. Norben Tea & Exports Ltd (519528, INE369C01017)
  3. Soma Textiles & Industries Ltd (521034, INE314C01013)

Impact Justification

Regular surveillance framework update affecting specific securities with trading restrictions, impacts investors holding these stocks