Description

BSE updates the Enhanced Surveillance Measure framework with 3 new securities added to ESM Stage I, 1 security moving to higher stage, and consolidated list of 30+ securities under surveillance.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) framework effective January 29, 2026. Three new securities have been shortlisted and added to ESM Stage I: Amit Securities Ltd, Borana Weaves Ltd, and Citi Port Financial Services Ltd. Additionally, CHPL Industries Ltd will continue in ESM but move to a higher surveillance stage. No securities are exiting the ESM framework in this update.

Key Points

  • 3 new securities added to Enhanced Surveillance Measure (ESM) Stage I
  • 1 security (CHPL Industries Ltd) moving to higher ESM stage
  • No securities moving to lower ESM stages
  • No securities exiting ESM framework
  • Consolidated list includes 30+ securities under various ESM stages (I and II)
  • Changes effective from January 29, 2026

Securities Added to ESM Stage I

New Entries (Effective Jan 29, 2026):

  1. Amit Securities Ltd (Scrip: 531557, ISIN: INE137E01014)
  2. Borana Weaves Ltd (Scrip: 544404, ISIN: INE16SF01016) - As per NSE
  3. Citi Port Financial Services Ltd (Scrip: 531235, ISIN: INE494D01011)

Securities Moving to Higher ESM Stage

Upgraded Surveillance (Effective Jan 29, 2026):

  1. CHPL Industries Ltd (Scrip: 539335, ISIN: INE714Q01014) - Moving to higher ESM stage while continuing in framework

Consolidated ESM Framework Status

The circular includes a consolidated list of securities under ESM surveillance with their respective stages. Notable securities include:

ESM Stage II:

  • Aadi Industries Ltd
  • ABM Knowledgeware Ltd
  • Alps Industries Ltd
  • Arcee Industries Ltd
  • Ashnisha Industries Ltd
  • Bandaram Pharma Packtech Ltd

ESM Stage I:

  • Multiple securities including newly added entries and existing surveillance targets
  • Includes both regular and SME scrips

Regulatory Framework

The Enhanced Surveillance Measure (ESM) is a graded surveillance mechanism where:

  • Securities are placed under enhanced monitoring due to price movements, volumes, or volatility concerns
  • Stage I represents initial surveillance level
  • Stage II represents heightened surveillance with stricter monitoring
  • Securities can move between stages or exit based on compliance and market behavior

Compliance Requirements

  • Market participants must note the ESM classification for affected securities
  • Trading in ESM securities may be subject to additional restrictions including:
    • Price bands
    • Trade-for-trade settlement
    • Higher margin requirements
    • Reduced position limits
  • Investors should exercise increased caution when trading ESM securities
  • Brokers must ensure clients are aware of ESM status before execution

Important Dates

  • Effective Date: January 29, 2026
  • Circular Date: January 28, 2026

Impact Assessment

Market Impact: High - Enhanced surveillance directly affects liquidity and trading activity in the listed securities. Investors may face:

  • Reduced liquidity due to trade-for-trade settlement requirements
  • Higher transaction costs from increased margin requirements
  • Greater price volatility during surveillance period

Investor Impact: Existing shareholders and traders in these securities will experience restricted trading conditions. The ESM framework serves as a warning mechanism for retail investors to exercise caution.

Regulatory Significance: This update demonstrates BSE’s ongoing surveillance activities to maintain market integrity and protect investor interests by identifying securities with concerning trading patterns.

Impact Justification

Affects trading in multiple securities with enhanced surveillance restrictions, directly impacting investor liquidity and trading behavior