Description

BSE updates the list of securities under Enhanced Surveillance Measure (ESM) framework effective January 2, 2026, with additions, stage movements, and consolidated list of monitored securities.

Summary

BSE has issued an update to the Enhanced Surveillance Measure (ESM) framework effective January 2, 2026. The circular identifies securities being newly shortlisted under ESM, securities moving to higher or lower ESM stages, securities exiting the framework, and provides a consolidated list of all securities currently under ESM surveillance. Five new securities have been added to Stage I ESM, while three existing securities are being moved to higher stages.

Key Points

  • 5 new securities shortlisted in ESM framework effective January 2, 2026
  • 3 securities continuing in ESM but moving to higher stages
  • No securities moving to lower ESM stages
  • No securities exiting the ESM framework in this update
  • Consolidated list shows 25+ securities under various ESM stages
  • ESM stages range from Stage I to Stage II based on surveillance criteria

New Securities Under ESM (Stage I)

Newly Shortlisted Securities effective January 2, 2026:

  1. Aayush Wellness Ltd (539528, INE430R01023)
  2. Eraaya Lifespaces Ltd (531035, INE432F01032)
  3. Hind Aluminium Industries Ltd (531979, INE227B01019)
  4. Madhuveer Com 18 Network Ltd (531910, INE312M01016)
  5. Mapro Industries Ltd (509762, INE848M01019)

Securities Moving to Higher ESM Stages

Securities continuing in ESM but escalating to higher stages:

  1. Bandaram Pharma Packtech Ltd (524602, INE875N01036)
  2. Organic Coatings Ltd (531157, INE412E01011)
  3. Tejassvi Aaharam Ltd (531628, INE173E01019)

Regulatory Framework

The Enhanced Surveillance Measure (ESM) is a framework implemented by stock exchanges to enhance market surveillance and protect investor interests. Securities are placed under ESM based on specific criteria related to price movements, trading volumes, corporate governance issues, or other regulatory concerns. The framework operates in multiple stages with progressively stricter surveillance and trading restrictions.

Compliance Requirements

  • Market participants must be aware of securities under ESM framework
  • Enhanced due diligence required for trading in ESM securities
  • Investors should exercise additional caution when dealing with ESM-listed securities
  • Trading members must ensure compliance with ESM-specific trading restrictions
  • Securities under ESM may have additional disclosure requirements

Important Dates

  • Effective Date: January 2, 2026
  • Circular Date: January 1, 2026

Impact Assessment

Market Impact:

  • Securities newly added to ESM may experience reduced liquidity due to increased investor caution
  • Trading volumes in affected securities may decline as surveillance measures intensify
  • Securities moving to higher ESM stages face stricter monitoring and potential additional restrictions

Investor Impact:

  • Investors holding these securities should review their positions and assess risk exposure
  • New investments in ESM securities require enhanced due diligence
  • Potential impact on stock prices due to negative sentiment associated with ESM classification

Operational Impact:

  • Brokers and trading members must update their systems to reflect ESM status changes
  • Compliance teams need to ensure proper disclosures and risk warnings to clients
  • Surveillance teams will monitor these securities more closely for any irregularities

Consolidated ESM Securities (Partial List)

The circular provides a consolidated list showing securities under various ESM stages, including:

  • AAA Technologies Ltd (Stage I)
  • Aadi Industries Ltd (Stage II)
  • Alps Industries Ltd (Stage II)
  • Alan Scott Enterprises Ltd (Stage II)
  • Multiple other securities across different ESM stages

Note: The full consolidated list contains 25+ securities across different ESM stages, with specific scrip codes and ISIN numbers provided in the annexures.

Impact Justification

Affects multiple securities with enhanced trading restrictions under ESM framework, requiring increased surveillance and potentially impacting trading volumes and investor participation in listed stocks