Description

BSE updates the Enhanced Surveillance Measure framework with 5 new securities added to ESM Stage I and 3 securities moving to higher ESM stages effective January 2, 2026.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) framework effective January 2, 2026. Five securities are being newly added to ESM Stage I, including Aayush Wellness Ltd, Eraaya Lifespaces Ltd, Hind Aluminium Industries Ltd, Madhuveer Com 18 Network Ltd, and Mapro Industries Ltd. Additionally, three existing securities (Bandaram Pharma Packtech Ltd, Organic Coatings Ltd, and Tejassvi Aaharam Ltd) will be moved to higher ESM stages. No securities are moving to lower stages or exiting the ESM framework.

Key Points

  • 5 securities newly shortlisted for ESM Stage I framework
  • 3 securities escalated to higher ESM stages due to continued surveillance concerns
  • No securities moving to lower ESM stages
  • No securities exiting ESM framework in this update
  • Changes applicable from January 2, 2026
  • Consolidated list includes 25+ securities across various ESM stages

Regulatory Changes

The Enhanced Surveillance Measure framework continues to apply stricter trading and surveillance controls on identified securities. Securities under ESM are subject to:

  • Additional disclosure requirements
  • Price bands and circuit filters
  • Trade-for-trade settlement (no intraday trading)
  • 100% margin requirements
  • Additional surveillance by the exchange

Securities can progress through multiple ESM stages (Stage I, II, etc.) with increasingly stringent measures based on ongoing concerns.

Compliance Requirements

For Listed Companies:

  • Securities newly added to ESM must comply with enhanced disclosure norms
  • Companies must provide additional clarifications as requested by the exchange
  • Increased scrutiny on corporate announcements and financial disclosures

For Trading Members and Investors:

  • Trade-for-trade settlement mandatory for ESM securities
  • 100% upfront margin required for transactions
  • No intraday trading or short selling permitted
  • Delivery-based transactions only

Important Dates

  • Effective Date: January 2, 2026 - All ESM changes become applicable
  • Securities added: Aayush Wellness (539528), Eraaya Lifespaces (531035), Hind Aluminium Industries (531979), Madhuveer Com 18 Network (531910), Mapro Industries (509762)
  • Securities moving to higher stages: Bandaram Pharma Packtech (524602), Organic Coatings (531157), Tejassvi Aaharam (531628)

Impact Assessment

Market Impact:

  • Limited market-wide impact as ESM affects specific securities only
  • Reduced liquidity in affected securities due to trade-for-trade settlement
  • Higher transaction costs due to 100% margin requirements
  • Potential price volatility during transition to ESM framework

Investor Impact:

  • Investors holding these securities face stricter trading conditions
  • Exit options limited to delivery-based selling only
  • Enhanced risk disclosure for securities under ESM
  • Potential difficulty in finding counterparties for transactions

Operational Impact:

  • Brokers must ensure compliance with ESM trading restrictions
  • Risk management systems need updates for margin requirements
  • Increased monitoring and reporting obligations for trading members

Impact Justification

Routine surveillance measure updates affecting 8 securities with 5 new additions and 3 stage escalations, impacting trading in these specific securities