Enhanced Surveillance Measure (ESM) - Securities Movement Updates

Description

BSE updates on securities moving to higher ESM stages effective January 30, 2026, including Aptus Pharma Ltd and Rotographics (India) Ltd.

Summary

BSE has issued updates to the Enhanced Surveillance Measure (ESM) Framework effective January 30, 2026. Two securities - Aptus Pharma Ltd (Scrip Code: 544529, ISIN: INE15XJ01010) and Rotographics (India) Ltd (Scrip Code: 539922, ISIN: INE364S01014) - will be moved to higher ESM stages. No securities are being newly added to ESM, moved to lower stages, or exiting the framework. The circular includes a consolidated list of 30+ securities currently under ESM with their respective stages.

Key Points

• No new securities shortlisted for ESM framework
• 2 securities moving to higher ESM stages: Aptus Pharma Ltd and Rotographics (India) Ltd
• No securities moving to lower ESM stages
• No securities exiting the ESM framework
• Aptus Pharma Ltd moving to Stage II ESM (SME scrip)
• Rotographics (India) Ltd also moving to higher stage
• Changes effective from January 30, 2026
• Consolidated list shows securities across ESM Stage I and Stage II

Regulatory Changes

The Enhanced Surveillance Measure framework continues with stage-based surveillance. Securities under ESM are subject to stricter trading parameters including reduced price bands, 100% upfront margin requirements, and trade-for-trade settlement. Movement to higher stages indicates deteriorating market quality parameters such as unusual price movements, low market capitalization, high low deliverable percentage, or other surveillance concerns.

Compliance Requirements

• Trading members must ensure compliance with ESM framework requirements for affected securities
• 100% upfront margin collection mandatory for ESM securities
• Trade-for-trade settlement applicable
• Price band restrictions as per ESM stage apply
• Enhanced disclosure and monitoring obligations for trading activities in these securities

Important Dates

• Effective Date: January 30, 2026 - ESM stage changes take effect
• Circular Date: January 29, 2026

Impact Assessment

Market Impact: The movement of securities to higher ESM stages signals regulatory concerns about market quality and trading patterns. This typically results in reduced liquidity and trading volumes due to stricter surveillance measures.

Investor Impact: Investors holding or trading these securities will face tighter trading restrictions, increased margin requirements, and compulsory delivery-based settlement. The ESM classification serves as a cautionary signal for investors.

Operational Impact: Brokers and trading members must update their risk management systems to ensure compliance with enhanced margin and settlement requirements for these securities from January 30, 2026.

Securities Moving to Higher ESM Stages

#(SME Scrip) *(As per NSE)

Impact Justification

Two securities moving to higher ESM stages indicating increased surveillance due to market concerns. Affects trading parameters and investor attention for listed companies.