Description

BSE updates the Enhanced Surveillance Measure (ESM) framework with new securities being added, securities moving to higher/lower ESM stages, and consolidated list of all securities under ESM surveillance.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) framework effective February 02, 2026. The circular includes addition of one new security (Alphalogic Industries Ltd) to the ESM framework, movement of two securities (Shantai Industries Ltd and Simandhar Impex Ltd) to higher ESM stages, and provides a consolidated list of 30+ securities currently under ESM surveillance across different stages.

Key Points

  • 1 security newly shortlisted under ESM framework: Alphalogic Industries Ltd (SME scrip)
  • 2 securities moving to higher ESM stages: Shantai Industries Ltd and Simandhar Impex Ltd
  • No securities moving to lower ESM stages
  • No securities exiting the ESM framework
  • ESM framework includes Stage I and Stage II surveillance measures
  • Consolidated list shows securities distributed across ESM Stage I and Stage II
  • Changes effective from February 02, 2026

Regulatory Changes

The Enhanced Surveillance Measure framework is BSE’s mechanism to monitor securities showing abnormal price movements or other surveillance concerns. Securities under ESM are subject to additional surveillance including:

  • Trade-for-trade settlement (no intraday trading)
  • 100% upfront margin requirements
  • Progressive surveillance stages (Stage I, Stage II) with increasing restrictions
  • Additional disclosure requirements for companies

Compliance Requirements

  • Trading members must ensure 100% upfront margin for all transactions in ESM securities
  • Only delivery-based transactions permitted (no intraday squaring off)
  • Investors should be aware of enhanced surveillance status before trading
  • Companies under ESM may face additional disclosure obligations
  • Securities in higher stages face stricter monitoring and potential further restrictions

Important Dates

  • Effective Date: February 02, 2026 - All ESM changes become effective
  • Circular Date: February 01, 2026

Impact Assessment

Trading Impact: Securities newly added or moved to higher ESM stages will experience reduced liquidity due to trade-for-trade settlement and higher margin requirements. This particularly affects Alphalogic Industries Ltd (new entry) and Shantai Industries Ltd and Simandhar Impex Ltd (moving to higher stages).

Investor Impact: Investors holding these securities should note the enhanced surveillance status and associated trading restrictions. Higher margin requirements and inability to conduct intraday trades may impact trading strategies.

Market Impact: The ESM framework serves as an early warning system for securities with potential concerns. Investors should exercise additional caution and conduct thorough due diligence before trading in ESM securities.

Securities Details

Newly Added to ESM (Stage I)

  • Alphalogic Industries Ltd (543937, INE0NZF01019) - SME scrip

Moving to Higher ESM Stages

  • Shantai Industries Ltd (512297, INE408F01024)
  • Simandhar Impex Ltd (544662, INE0VI201010)

Consolidated List Highlights

The circular provides a comprehensive list of 30+ securities currently under ESM framework, distributed across Stage I and Stage II surveillance, including companies from various sectors such as textiles, pharmaceuticals, industries, securities, and trading.

Impact Justification

Regular ESM framework update affecting multiple securities with trading restrictions and surveillance measures. One new security added, two securities moved to higher ESM stages, impacting liquidity and trading conditions for affected stocks.