Description

BSE updates the Enhanced Surveillance Measure (ESM) framework with two securities moving to higher ESM stages, while no securities are being newly added or removed from the framework.

Summary

BSE has issued updates to the Enhanced Surveillance Measure (ESM) framework effective January 20, 2026. Two securities are being moved to higher ESM stages: Ashnisha Industries Ltd (Scrip Code: 541702, ISIN: INE694W01024) moving to Stage II, and Chandni Machines Ltd (Scrip Code: 542627, ISIN: INE01GZ01011) also moving to a higher stage. No new securities are being added to the ESM framework, and no securities are being moved to lower stages or removed from the framework.

Key Points

  • Two securities moving to higher ESM stages effective January 20, 2026
  • Ashnisha Industries Ltd transitioning to Stage II ESM
  • Chandni Machines Ltd moving to higher ESM stage
  • No new securities shortlisted for ESM framework
  • No securities moving out of ESM framework
  • No securities moving to lower ESM stages
  • Consolidated list includes over 30 securities across ESM Stage I and Stage II

Regulatory Changes

The Enhanced Surveillance Measure (ESM) framework continues to apply tiered surveillance stages to securities exhibiting abnormal price movements or trading patterns. Securities in higher ESM stages face stricter trading conditions including:

  • Higher margin requirements
  • Trade-to-trade settlement
  • Additional disclosure requirements
  • Enhanced monitoring of price and volume movements

The migration of securities to higher stages indicates continued concerns about their trading behavior.

Compliance Requirements

For Trading Members:

  • Update surveillance parameters for affected securities
  • Apply appropriate margin requirements for Stage II securities
  • Ensure clients are aware of ESM restrictions on these securities
  • Monitor positions in ESM securities more closely

For Investors:

  • Be aware of increased margins on securities moving to higher ESM stages
  • Note that ESM securities have stricter trading conditions
  • Review consolidated list of all securities under ESM framework

Important Dates

  • Effective Date: January 20, 2026 - ESM stage changes come into effect
  • Circular Date: January 19, 2026

Impact Assessment

Market Impact: Medium - Two securities face increased surveillance and trading restrictions which may impact liquidity and investor sentiment for these stocks.

Operational Impact: Trading members must adjust risk management systems and margin calculations for the affected securities. The movement to higher ESM stages typically results in reduced trading volumes and wider bid-ask spreads.

Investor Impact: Shareholders and traders in Ashnisha Industries Ltd and Chandni Machines Ltd will experience higher margin requirements and potentially lower liquidity. The ESM framework serves as a warning signal about potential risks in these securities.

The consolidated list of over 30 securities under ESM framework (Annexure III) indicates ongoing surveillance concerns across multiple stocks, predominantly in Stage I with some in Stage II.

Impact Justification

Affects two securities moving to higher ESM stages which increases trading restrictions. The consolidated list shows 30+ securities under ESM framework stages I and II.