Description

BSE updates the Enhanced Surveillance Measure (ESM) framework effective January 9, 2026, with 7 securities newly added, 2 securities moving to higher ESM stages, and consolidated list of securities under surveillance.

Summary

BSE has updated its Enhanced Surveillance Measure (ESM) Framework effective January 9, 2026. The circular identifies securities being newly shortlisted for ESM, securities moving to higher or lower ESM stages, and provides a consolidated list of all securities currently under the framework. Seven securities are newly added to ESM Stage I, and two securities are being moved to higher ESM stages. No securities are being removed from the framework or moved to lower stages.

Key Points

  • 7 new securities shortlisted for Enhanced Surveillance Measure (ESM) effective January 9, 2026
  • 2 securities continuing in ESM but moving to higher stages
  • No securities moving out of ESM framework
  • No securities moving to lower ESM stages
  • Consolidated list includes 24+ securities under various ESM stages
  • Securities marked with special notations: (*) as per NSE, (#) SME scrip

Securities Newly Added to ESM (Stage I)

  1. Arcee Industries Ltd (Scrip Code: 520121, ISIN: INE276D01012)
  2. Baroda Extrusion Ltd (Scrip Code: 513502, ISIN: INE927K01023)
  3. Bonlon Industries Ltd (Scrip Code: 543211, ISIN: INE0B9A01018)
  4. Goyal Aluminiums Ltd* (Scrip Code: 541152, ISIN: INE705X01026)
  5. Pulsar International Ltd (Scrip Code: 512591, ISIN: INE183U01022)
  6. Simandhar Impex Ltd (Scrip Code: 544662, ISIN: INE0VI201010)
  7. Sovereign Diamonds Ltd (Scrip Code: 523826, ISIN: INE959D01013)

Securities Moving to Higher ESM Stages

  1. Earkart Ltd# (Scrip Code: 544549, ISIN: INE1A8F01035) - SME scrip
  2. Jeevan Scientific Technology Ltd (Scrip Code: 538837, ISIN: INE237B01018)

Regulatory Changes

The Enhanced Surveillance Measure (ESM) Framework is a surveillance mechanism to enhance market integrity and safeguard investor interests. Securities under ESM are subject to:

  • Additional surveillance and monitoring
  • Potential trading restrictions based on ESM stage
  • Progressive action framework with multiple stages
  • Trade-for-trade settlement in many cases
  • Price bands and position limits

Compliance Requirements

  • Market participants must note the ESM classification of listed securities
  • Trading in ESM securities may be subject to additional margins and restrictions
  • Brokers should inform clients about securities under ESM framework
  • Enhanced due diligence required for transactions in ESM securities
  • Surveillance measures increase progressively with higher ESM stages

Important Dates

  • Effective Date: January 9, 2026
  • Circular Date: January 8, 2026

Impact Assessment

Market Impact: High - Securities added to or moved within the ESM framework face increased scrutiny and trading restrictions, which typically results in reduced liquidity and increased volatility. Investors holding these securities need to be aware of the surveillance measures and potential trading limitations.

Investor Impact: Investors and traders dealing in the affected securities must exercise caution. ESM classification indicates regulatory concerns about price movements, volatility, or market activity in these securities. The framework aims to protect investors by flagging securities that require closer monitoring.

Trading Impact: Securities under ESM may have additional margin requirements, position limits, and could be moved to trade-for-trade settlement, significantly impacting trading strategies and liquidity.

Impact Justification

ESM framework changes directly impact trading activities for affected securities, requiring immediate attention from market participants. Securities under ESM face additional surveillance and trading restrictions.