Description

BSE updates the Enhanced Surveillance Measure framework with 2 new securities added, movement of securities between ESM stages, and 24 securities exiting the framework effective January 12, 2026.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) framework effective January 12, 2026. The circular includes three key actions: addition of 2 new securities to ESM, movement of 13 securities within different ESM stages (1 moving higher, 12 moving lower), and removal of 24 securities from the ESM framework entirely.

Key Points

  • 2 securities newly shortlisted under ESM: Rollatainers Ltd (502448) and Spice Islands Industries Ltd (526827)
  • 1 security moving to higher ESM stage: Kalpa Commercial Ltd (539014)
  • 12 securities moving to lower ESM stages, indicating improved surveillance parameters
  • 24 securities exiting ESM framework completely
  • Changes effective from January 12, 2026
  • Some exiting securities may be moving to other frameworks (SMP, IBC) or Trade for Trade

Regulatory Changes

The Enhanced Surveillance Measure framework is a preventive measure by BSE to alert investors about securities exhibiting abnormal price movements or other concerns. Securities are placed in different stages (Stage 1 through Stage 6) with progressively stricter surveillance measures.

New Additions to ESM:

  • Rollatainers Ltd (marked as per NSE)
  • Spice Islands Industries Ltd

Movement to Higher Stage:

  • Kalpa Commercial Ltd - indicating continued or increased surveillance concerns

Movement to Lower Stages: 12 securities showing improvement in surveillance parameters, including Ambitious Plastomac, Crimson Metal Engineering, Cura Technologies, Gujarat Raffia Industries, IEL Ltd, Milestone Furniture (SME), Permanent Magnets, Sarup Industries, Sizemasters Technology, SPEL Semiconductor, Typhoon Financial Services, and Zelio E Mobility (SME).

Compliance Requirements

  • Investors and traders should be aware that securities under ESM framework are subject to additional surveillance measures
  • Trading members must ensure compliance with ESM stage-specific requirements including margin requirements and price bands
  • Securities in higher ESM stages typically have stricter trading restrictions including additional surveillance deposit (ASD) requirements
  • Market participants should review their positions in affected securities before the effective date

Important Dates

  • Effective Date: January 12, 2026 - All ESM framework changes take effect
  • Circular Date: January 9, 2026

Impact Assessment

Market Impact:

  • Securities newly added to ESM may experience reduced liquidity due to enhanced surveillance measures
  • Securities moving to higher stages face stricter trading conditions which may impact investor sentiment
  • Securities exiting ESM or moving to lower stages may see improved liquidity and investor confidence

Operational Impact:

  • Trading members need to update their risk management systems for margin and surveillance deposit calculations
  • Investors holding securities in higher ESM stages should be prepared for potential additional margin requirements
  • 24 securities exiting ESM framework may experience normalized trading conditions, though some are moving to other surveillance frameworks

Investor Considerations:

  • Securities under ESM framework carry higher risk and require careful evaluation
  • Movement to higher stages indicates deteriorating parameters that warrant caution
  • Exit from ESM does not necessarily indicate improved fundamentals if moving to other surveillance frameworks (SMP, IBC, or Trade for Trade)

Impact Justification

Routine surveillance framework update affecting 38 securities with enhanced monitoring requirements for some and relaxation for others. Material impact on traders and investors of affected stocks.