Description

BSE updates the Enhanced Surveillance Measure framework with one security moving to higher ESM stage and consolidated list of 32+ securities under surveillance.

Summary

BSE has announced updates to the Enhanced Surveillance Measure (ESM) Framework effective January 28, 2026. The circular provides lists of securities being shortlisted, moved between ESM stages, and exiting the framework. Notably, Thrive Future Habitats Ltd (Scrip Code: 523120, ISIN: INE628D01014) is being moved to a higher ESM stage. No new securities are being added to the framework, and no securities are moving out or being moved to lower stages. A consolidated list shows 32+ securities currently under various ESM stages.

Key Points

  • No new securities added to ESM framework effective January 28, 2026
  • One security moving to higher ESM stage: Thrive Future Habitats Ltd
  • No securities moving to lower ESM stages
  • No securities exiting the ESM framework
  • Consolidated list includes 32+ securities across ESM Stage I and Stage II
  • ESM framework aims to alert investors about securities with abnormal price movements or trading patterns
  • Securities under ESM face additional trading restrictions including Trade-for-Trade settlement

Regulatory Changes

The ESM framework continues to operate as per existing guidelines. Securities move between stages based on their trading behavior and price volatility patterns. Higher ESM stages typically involve stricter surveillance and trading restrictions.

Compliance Requirements

  • Trading members must ensure awareness of ESM classification for affected securities
  • Securities under ESM are subject to Trade-for-Trade (T2T) settlement
  • Enhanced margin requirements may apply to securities under ESM
  • Investors should be informed about the surveillance status of these securities
  • No short selling permitted in securities under ESM

Important Dates

  • Effective Date: January 28, 2026 - ESM stage changes come into effect
  • Circular Date: January 27, 2026

Impact Assessment

Market Impact: The movement of Thrive Future Habitats Ltd to a higher ESM stage indicates continued concerns about its trading pattern. This will result in stricter surveillance and reduced liquidity for this security.

Trading Impact: Securities under ESM face Trade-for-Trade settlement, meaning no intraday trading, reducing liquidity and trading volumes. Higher ESM stages may involve additional surveillance measures.

Investor Impact: Investors holding or trading securities under ESM should exercise enhanced caution. The framework serves as an alert mechanism for securities exhibiting abnormal price movements or trading behavior.

Consolidated List Highlights: The framework currently monitors 32+ securities including Aadi Industries Ltd, Aayush Wellness Ltd, ABM Knowledgeware Ltd, Adcon Capital Services Ltd, Alps Industries Ltd, Arcee Industries Ltd, and Ashnisha Industries Ltd among others, with some classified under Stage I and others under Stage II surveillance.

Impact Justification

Affects trading conditions for securities under enhanced surveillance with one stock moving to higher ESM stage, impacting liquidity and trading flexibility for affected securities