Description

BSE updates the list of securities under Enhanced Surveillance Measure framework, with additions, stage movements, and consolidated list effective January 7, 2026.

Summary

BSE has issued an update to the Enhanced Surveillance Measure (ESM) framework effective January 7, 2026. The circular lists securities being newly added to ESM, securities moving to higher or lower ESM stages, and provides a consolidated list of all securities currently under ESM surveillance.

Key Points

  • 4 securities newly shortlisted for ESM framework: Aerpace Industries Ltd, Kinetic Trust Ltd, Mach Conferences And Events Ltd, and Mayur Leather Products Ltd
  • 3 securities moving to higher ESM stages: ABM Knowledgeware Ltd, CMX Holdings Ltd, and Shentracon Chemicals Ltd
  • No securities moving to lower ESM stages
  • No securities exiting the ESM framework
  • Consolidated list includes 26+ securities across different ESM stages (Stage I and Stage II)

Regulatory Changes

The ESM framework continues to identify securities that require enhanced surveillance due to price volatility, trading patterns, or other risk factors. Securities are classified into different stages based on surveillance criteria, with higher stages indicating increased monitoring requirements.

Compliance Requirements

  • Trading members must be aware of securities under ESM framework
  • Enhanced disclosure and monitoring requirements apply to ESM securities
  • Trade-for-trade settlement mechanism may apply depending on ESM stage
  • Additional margin requirements and price bands may be imposed

Important Dates

  • Effective Date: January 7, 2026 - All ESM changes come into effect

Impact Assessment

Market Impact: Securities under ESM face trading restrictions that reduce liquidity and increase transaction costs. Investors in affected securities may experience reduced market depth and wider bid-ask spreads.

Investor Impact: Retail investors holding ESM securities should be aware of enhanced surveillance status, which signals higher risk and regulatory scrutiny. The move to higher ESM stages for 3 securities indicates deteriorating market conditions or compliance concerns.

Operational Impact: Brokers and trading members must update their systems to reflect ESM status and ensure compliance with applicable trading restrictions and margin requirements.

Impact Justification

Affects trading conditions for multiple securities through ESM framework placement and stage movements, impacting liquidity and investor access