Description

BSE updates Enhanced Surveillance Measure framework effective January 12, 2026, with 2 securities newly shortlisted, 1 moving to higher stage, 12 moving to lower stage, and 24 securities moving out of ESM framework.

Summary

BSE has announced updates to the Enhanced Surveillance Measure (ESM) Framework effective January 12, 2026. The circular details securities being newly shortlisted into ESM, those moving to higher or lower ESM stages, and securities exiting the framework entirely. ESM is a surveillance mechanism applied to securities exhibiting abnormal price movements or other concerns, typically involving higher margin requirements and trading restrictions.

Key Points

  • 2 securities newly shortlisted in ESM Framework: Rollatainers Ltd and Spice Islands Industries Ltd
  • 1 security moving to higher ESM stage: Kalpa Commercial Ltd
  • 12 securities moving to lower ESM stages, indicating improved market behavior
  • 24 securities moving out of ESM Framework completely
  • Changes effective from January 12, 2026
  • Some securities exiting ESM are moving to other frameworks (SMP, IBC, or Trade for Trade)
  • Framework includes both main board and SME scrips

Regulatory Changes

The Enhanced Surveillance Measure Framework operates on a staged approach where securities exhibiting unusual price movements, volatility, or other surveillance concerns are placed under enhanced monitoring with progressively stricter measures. Securities can move between stages based on their market behavior:

  • Higher Stage Movement: Indicates continued or worsening surveillance concerns, resulting in stricter trading conditions
  • Lower Stage Movement: Reflects improved market behavior and compliance, with gradual relaxation of restrictions
  • Exit from Framework: Securities demonstrating sustained normal trading patterns are removed from ESM

Some securities may transition to other surveillance frameworks (SMP Framework, IBC Framework) or Trade for Trade segments instead of complete removal from surveillance.

Compliance Requirements

  • Trading Members: Must update their systems to reflect new ESM classifications and applicable margin requirements for affected securities
  • Investors: Should be aware of enhanced margin requirements and potential trading restrictions on securities under ESM
  • Listed Companies: Securities under ESM may face additional disclosure obligations and monitoring
  • Risk Management Systems: Brokers must ensure proper categorization and margin collection for ESM securities

Important Dates

  • Effective Date: January 12, 2026 - All ESM framework changes become applicable
  • Circular Date: January 9, 2026

Impact Assessment

Market Impact:

  • Securities newly entering ESM will face reduced liquidity due to higher margins and increased scrutiny
  • 24 securities exiting ESM framework may see improved liquidity and investor participation
  • 12 securities moving to lower ESM stages will benefit from gradual normalization of trading conditions
  • 1 security moving to higher stage faces increased trading restrictions

Investor Impact:

  • Higher margin requirements for securities in ESM stages
  • Potential restrictions on intraday trading or derivative positions
  • Enhanced disclosure requirements may provide better transparency
  • Securities exiting ESM may see price appreciation due to improved accessibility

Operational Impact:

  • Brokers must update risk management systems and margin calculations
  • Surveillance systems need reconfiguration for new classifications
  • Client communication required regarding changed trading conditions

Securities Lists

Newly Shortlisted in ESM (Effective Jan 12, 2026)

  1. Rollatainers Ltd (502448, INE927A01040)
  2. Spice Islands Industries Ltd (526827, INE882D01017)

Moving to Higher ESM Stage

  1. Kalpa Commercial Ltd (539014, INE059Q01014)

Moving to Lower ESM Stage

  1. Ambitious Plastomac Company Ltd (526439, INE267C01013)
  2. Crimson Metal Engineering Company Ltd (526977, INE318P01016)
  3. Cura Technologies Ltd (532332, INE117B01020)
  4. Gujarat Raffia Industries Ltd (523836, INE610B01024)
  5. IEL Ltd (524614, INE056E01024)
  6. Milestone Furniture Ltd (541337, INE424Z01011) - SME
  7. Permanent Magnets Ltd (504132, INE418E01018)
  8. Sarup Industries Ltd (514412, INE305D01019)
  9. Sizemasters Technology Ltd (513496, INE235U01012)
  10. SPEL Semiconductor Ltd (517166, INE252A01019)
  11. Typhoon Financial Services Ltd (539468, INE761R01013)
  12. Zelio E Mobility Ltd (544563, INE1B3501014) - SME

Moving Out of ESM Framework

24 securities including AAA Technologies Ltd, Atlantaa Ltd, BDH Industries Ltd, CyberTech Systems and Software Ltd, and others. Note: Rajasthan Petro Synthetics Ltd will continue in Trade for Trade as per circular dated January 5, 2026.

Impact Justification

Affects 39 securities with changes in surveillance measures that directly impact trading conditions, margin requirements, and investor participation. ESM framework changes significantly affect liquidity and trading activity for listed securities.