Description

Updates to Enhanced Surveillance Measure framework with securities being added, moved between ESM stages, and removed from ESM effective January 5, 2026.

Summary

BSE has announced changes to the Enhanced Surveillance Measure (ESM) Framework effective January 5, 2026. The circular identifies securities being newly added to ESM, securities moving to higher or lower ESM stages, and 27 securities being removed from the ESM framework entirely. Some securities moving out continue in Trade for Trade basis.

Key Points

  • 3 securities newly shortlisted for ESM Framework: KBS India Ltd, Shukra Bullions Ltd, Vipul Ltd
  • 3 securities moving to higher ESM stages: Octaware Technologies Ltd, Shri Keshav Cements And Infra Ltd, Sri Chakra Cement Ltd
  • 7 securities moving to lower ESM stages: Alan Scott Enterprises Ltd, Emergent Industrial Solutions Ltd, Gautam Exim Ltd, MRC Agrotech Ltd, Omnitex Industries India Ltd, Svarnim Trade Udyog Ltd, Tamilnadu Steel Tubes Ltd
  • 27 securities moving out of ESM Framework entirely
  • Securities marked with (~) will continue in Trade for Trade basis as per circular dated November 27, 2025
  • Multiple SME scrips included in the changes (marked with #)
  • All changes effective from January 5, 2026

Regulatory Changes

The Enhanced Surveillance Measure framework is being adjusted to reflect current market conditions and trading patterns. Securities are being graduated between different ESM stages based on their surveillance parameters. The framework continues to work in conjunction with other surveillance measures including SMP Framework and IBC Framework.

Compliance Requirements

  • Investors and traders must note the changed surveillance status of affected securities
  • Trading members should update their systems to reflect new ESM classifications
  • Securities moving to higher ESM stages may face stricter trading restrictions
  • Securities continuing in Trade for Trade (marked ~) require delivery-based trading only
  • Market participants should review positions in affected securities before January 5, 2026

Important Dates

  • Effective Date: January 5, 2026 - All ESM framework changes become applicable
  • Circular Date: January 2, 2026

Impact Assessment

Market Impact: Medium - Affects 41 securities across various sectors including manufacturing, infrastructure, technology, and commodities. The ESM framework typically results in reduced liquidity and increased volatility for affected securities.

Trading Impact: Securities entering or moving to higher ESM stages will likely experience:

  • Reduced trading volumes due to additional surveillance
  • Increased margin requirements
  • Price discovery challenges
  • Potential investor exits before effective date

Positive Development: 27 securities are being removed from ESM, indicating improved trading behavior and compliance, though some continue with Trade for Trade restrictions.

Investor Consideration: Investors holding affected securities should review their positions and understand the implications of ESM stage changes on liquidity and trading flexibility.

Impact Justification

Affects trading conditions for 41 securities through ESM framework changes. Moderate impact as it involves routine surveillance adjustments but affects multiple companies and investor trading strategies.