Description

BSE updates the Enhanced Surveillance Measure (ESM) framework with securities being added, moved between stages, and removed effective January 5, 2026.

Summary

BSE has issued updates to the Enhanced Surveillance Measure (ESM) framework effective January 5, 2026. The circular identifies securities being newly added to ESM, those moving to higher or lower ESM stages, and 27 securities being removed from the framework entirely. ESM is applied to securities exhibiting unusual price movements or other risk characteristics requiring enhanced monitoring.

Key Points

  • 3 securities newly shortlisted for ESM framework: KBS India Ltd, Shukra Bullions Ltd, and Vipul Ltd
  • 3 securities moving to higher ESM stages: Octaware Technologies Ltd, Shri Keshav Cements And Infra Ltd, and Sri Chakra Cement Ltd
  • 7 securities moving to lower ESM stages including Alan Scott Enterprises Ltd, Emergent Industrial Solutions Ltd, and others
  • 27 securities being removed from ESM framework effective January 5, 2026
  • Some securities exiting ESM will continue in Trade for Trade segment as per previous circulars
  • Changes apply to both mainboard and SME scrips

Regulatory Changes

The ESM framework continues BSE’s risk management approach for securities with concerning trading patterns. Securities in ESM face additional restrictions including:

  • Trade for Trade settlement (no intraday trading)
  • 100% upfront margin requirements
  • Progressive stage-based restrictions depending on severity
  • Enhanced disclosure and monitoring requirements

Compliance Requirements

  • Trading members must ensure compliance with ESM requirements for affected securities from January 5, 2026
  • Investors holding securities in ESM should note trading restrictions and margin requirements
  • Securities marked with (~) will continue in Trade for Trade even after ESM exit per circular 20251127-51 dated November 27, 2025
  • Market participants must adjust risk management systems to reflect updated ESM classifications

Important Dates

  • Effective Date: January 5, 2026 - All ESM changes become applicable

Impact Assessment

Market Impact: Medium - affects trading liquidity and access for 40+ securities across various stages of ESM framework.

Investor Impact: Investors holding securities entering or moving to higher ESM stages will face increased trading restrictions and higher margin requirements. Those holding securities exiting ESM may see improved liquidity, though some remain in Trade for Trade.

Trading Impact: Securities in higher ESM stages face reduced liquidity due to mandatory delivery-based settlement and 100% margin requirements, potentially increasing price volatility.

Securities Details

Newly Added to ESM (Effective Jan 5, 2026)

  1. KBS India Ltd (530357, INE883D01023)
  2. Shukra Bullions Ltd (531506, INE561E01015)
  3. Vipul Ltd (511726, INE946H01037)

Moving to Higher ESM Stage

  1. Octaware Technologies Ltd (540416, INE208U01019) - SME
  2. Shri Keshav Cements And Infra Ltd (530977, INE260E01014)
  3. Sri Chakra Cement Ltd (518053, INE827D01020)

Moving to Lower ESM Stage

  1. Alan Scott Enterprises Ltd (539115, INE273F01022)
  2. Emergent Industrial Solutions Ltd (506180, INE668L01013)
  3. Gautam Exim Ltd (540613, INE721X01015) - SME
  4. MRC Agrotech Ltd (540809, INE333Y01017)
  5. Omnitex Industries India Ltd (514324, INE814D01010)
  6. Svarnim Trade Udyog Ltd (539911, INE730R01042)
  7. Tamilnadu Steel Tubes Ltd (513540, INE176E01012)

Exiting ESM Framework (27 securities)

Includes Amit Securities Ltd, Apis India Ltd, Bafna Pharmaceuticals Ltd, Bharat Gears Ltd, and 23 others. Several securities marked with (~) will continue under Trade for Trade restrictions despite ESM exit.

Impact Justification

Affects trading conditions for multiple securities under surveillance framework. Important for investors holding or trading these stocks as ESM placement impacts liquidity and trading requirements.