Description

BSE announces changes to Enhanced Surveillance Measure framework with 1 new security added, 5 securities moved to higher stage, 15 moved to lower stage, and 26 securities exiting ESM.

Summary

BSE has announced changes to the Enhanced Surveillance Measure (ESM) framework effective January 27, 2026. The circular identifies securities being newly added to ESM, those moving to higher or lower surveillance stages, and securities exiting the framework entirely. One security (Jauss Polymers Ltd) is newly shortlisted for ESM, five securities are moving to higher ESM stages indicating increased surveillance concerns, fifteen securities are moving to lower stages showing improvement, and twenty-six securities are completely exiting the ESM framework.

Key Points

  • 1 security newly shortlisted for Enhanced Surveillance Measure: Jauss Polymers Ltd (526001)
  • 5 securities escalating to higher ESM stages: Arcee Industries, Emergent Industrial Solutions, Samtel India, Sizemasters Technology, Vision Cinemas
  • 15 securities de-escalating to lower ESM stages showing improved compliance/trading behavior
  • 26 securities moving out of ESM framework completely, indicating satisfactory trading patterns
  • Changes effective from January 27, 2026
  • Includes both main board and SME scrips (marked with #)
  • Some securities exiting ESM due to inclusion in SMP Framework (marked with $)

Regulatory Changes

The Enhanced Surveillance Measure framework is BSE’s risk management tool to monitor securities showing abnormal price movements or other concerning trading patterns. Securities under ESM face additional surveillance including trade-for-trade settlement, price bands, and additional margin requirements. Movement between ESM stages reflects the exchange’s assessment of trading behavior and compliance levels.

Compliance Requirements

  • Securities in higher ESM stages face stricter trading restrictions and margin requirements
  • Investors trading in ESM securities should be aware of additional surveillance measures
  • Market participants must comply with stage-specific requirements including trade-for-trade settlement where applicable
  • Brokers must ensure appropriate margin collection for ESM securities

Important Dates

  • Effective Date: January 27, 2026 - All ESM framework changes become operational

Impact Assessment

Market Impact: Medium - Affects 47 securities across various stages of surveillance. Securities moving to higher ESM stages may experience reduced liquidity due to stricter trading conditions. Securities exiting ESM framework may see improved investor sentiment and trading activity.

Liquidity Impact: Securities escalating to higher ESM stages (5 securities) will face increased trading restrictions potentially reducing liquidity. Securities exiting ESM (26 securities) should see improved liquidity conditions.

Investor Impact: Investors holding securities moving to higher ESM stages should expect higher margin requirements and trade-for-trade settlement. Those holding securities exiting ESM will benefit from normalized trading conditions.

Operational Impact: Brokers and trading members must update their systems to reflect new ESM classifications and ensure appropriate margin collection and settlement procedures.

Impact Justification

Affects 47 securities with varying surveillance measures; impacts trading parameters and investor awareness but represents routine surveillance framework adjustments