Description
BSE updates the Enhanced Surveillance Measure framework with securities being added, moved between stages, and removed from ESM effective February 3, 2026.
Summary
BSE has announced updates to the Enhanced Surveillance Measure (ESM) framework effective February 3, 2026. Six securities are being newly shortlisted into ESM, one security (Mukat Pipes Ltd) will move to a higher ESM stage, and no securities are being removed from the framework. The circular also provides a consolidated list of all securities currently under ESM with their respective stages.
Key Points
- 6 securities newly added to ESM framework: Jet Solar Ltd, Manbro Industries Ltd, Paras Petrofils Ltd, Rekvina Laboratories Ltd, Sanchay Finvest Ltd, and Shree Krishna Infrastructure Ltd
- 1 security moving to higher ESM stage: Mukat Pipes Ltd
- No securities moving to lower ESM stages
- No securities being removed from ESM framework
- Changes effective from February 3, 2026
- Consolidated list includes securities in ESM Stage I and Stage II
- Multiple SME scrips included in the updates
Regulatory Changes
The Enhanced Surveillance Measure framework continues to be applied to identify and monitor securities showing unusual price movements or other abnormal trading patterns. Securities shortlisted under ESM are subject to additional surveillance measures including:
- Trade-for-trade settlement
- 100% upfront margin requirements
- Price bands as applicable
- Progressive stages (Stage I, II, III, IV) with increasingly stringent measures
Compliance Requirements
- Brokers must ensure clients are aware of ESM status before trading in affected securities
- 100% upfront margins must be collected for all ESM securities
- All trades in ESM securities will be settled on a trade-for-trade basis
- No intraday trading permitted in ESM securities
- Market participants should review their positions in affected securities
Important Dates
- February 3, 2026: Effective date for all ESM framework changes
- Securities will be subject to new ESM stage requirements from market opening on this date
Impact Assessment
Market Impact: High - The addition of securities to ESM and stage movements significantly affect liquidity and trading dynamics. Securities under ESM typically experience reduced trading volumes due to stricter margin requirements and trade-for-trade settlement.
Investor Impact: Investors holding or trading these securities will face:
- Increased margin requirements (100% upfront)
- No intraday trading opportunities
- Potential difficulty in exits due to reduced liquidity
- Gross settlement obligations
Operational Impact: Brokers and trading members need to update their surveillance systems, margin collection mechanisms, and client communication processes to reflect the new ESM classifications.
Securities Newly Added to ESM (Effective Feb 3, 2026)
- Jet Solar Ltd (Scrip Code: 538794, ISIN: INE155R01018) - SME Scrip
- Manbro Industries Ltd (Scrip Code: 512595, ISIN: INE348N01034)
- Paras Petrofils Ltd (Scrip Code: 521246, ISIN: INE162C01024) - As per NSE
- Rekvina Laboratories Ltd (Scrip Code: 526075, ISIN: INE092O01028)
- Sanchay Finvest Ltd (Scrip Code: 511563, ISIN: INE654D01010)
- Shree Krishna Infrastructure Ltd (Scrip Code: 542146, ISIN: INE951Z01013) - SME Scrip
Securities Moving to Higher ESM Stage
- Mukat Pipes Ltd (Scrip Code: 523832, ISIN: INE862C01029) - Moving to higher stage
Additional Notes
The circular provides a comprehensive consolidated list of all securities under ESM framework, showing 27+ securities across different ESM stages (Stage I and Stage II). Market participants should refer to Annexure III of the circular for the complete list of securities and their current ESM stage classifications.
Impact Justification
ESM framework changes directly impact trading restrictions and investor participation for affected securities, requiring immediate attention from market participants