Description

BSE announces changes to the Enhanced Surveillance Measure (ESM) framework effective February 09, 2026, including new additions, stage movements, and securities moving out of the framework.

Summary

BSE has issued updates to the Enhanced Surveillance Measure (ESM) framework effective February 09, 2026. The circular identifies securities being newly added to ESM, securities moving to higher or lower ESM stages, and securities exiting the framework. The ESM framework is applied to securities that witness abnormal price movements or exhibit characteristics requiring enhanced monitoring to protect investor interests.

Key Points

  • 2 securities newly shortlisted under ESM framework: Kairosoft AI Solutions Ltd and Tijaria Polypipes Ltd
  • 1 security moving to higher ESM stage: Gretex Corporate Services Ltd
  • 14 securities moving to lower ESM stages, including Aadi Industries Ltd, Bandaram Pharma Packtech Ltd, Filtron Engineers Ltd, and others
  • 11 securities moving out of ESM framework entirely, including Avax Apparels and Ornaments Ltd, Consolidated Construction Consortium Ltd, Empower India Ltd, and others
  • Some securities exiting ESM will continue in Trade for Trade segment as per previous circulars
  • Consolidated list provided showing all securities under ESM with their respective stages

Regulatory Changes

The ESM framework continues to operate with staged surveillance measures. Securities are categorized into different ESM stages (Stage I, Stage II, etc.) based on their risk profile and market behavior. The framework allows for:

  • Periodic review and movement between stages based on securities’ performance
  • Exit from ESM when securities no longer meet surveillance criteria
  • Continuation in Trade for Trade segment for certain securities even after ESM exit
  • Transfer to other frameworks (SMP Framework or IBC Framework) when applicable

Compliance Requirements

  • Trading members must note the securities under ESM and their respective stages
  • Enhanced due diligence required for securities under ESM framework
  • Clients must be informed about ESM status of securities
  • Trading restrictions applicable as per ESM stage guidelines
  • Securities marked with special notations continue in Trade for Trade segment

Important Dates

  • Effective Date: February 09, 2026 - All ESM changes become effective
  • Circular Date: February 06, 2026

Impact Assessment

Market Impact: Medium - Affects trading conditions for multiple securities with potential impact on liquidity and investor participation.

Trading Impact: Securities newly added to or moving to higher ESM stages face stricter surveillance and may see reduced trading activity. Securities moving to lower stages or exiting ESM may experience improved liquidity.

Investor Impact: Investors holding or trading these securities need to be aware of applicable surveillance measures, including potential Trade for Trade requirements and enhanced margin requirements.

Operational Impact: Brokers and trading members must update their systems to reflect the new ESM classifications and communicate changes to affected clients.

Securities Details

Annexure I - New Additions to ESM:

  • Kairosoft AI Solutions Ltd (506122, INE820M01018)
  • Tijaria Polypipes Ltd (533629, INE440L01017)

Moving to Higher ESM Stage:

  • Gretex Corporate Services Ltd (543324, INE199P01028)

Moving to Lower ESM Stage: 14 securities including Aadi Industries, Bandaram Pharma Packtech, Filtron Engineers, Kiran Syntex, Natura Hue Chem, Norben Tea & Exports, Octaware Technologies (SME), Organic Coatings, Shish Industries, Shri Keshav Cements, Soma Textiles, Sri Chakra Cement, SRM Energy, and VR Woodart.

Annexure II - Exiting ESM Framework: 11 securities including Avax Apparels (SME), Consolidated Construction Consortium, Empower India, GTN Textiles, Jay Ushin, Lancer Container Lines, Mahaveer Infoway, Prozone Realty, Reganto Enterprises, SDC Techmedia (SME), and Tamilnadu Steel Tubes. Several marked to continue in Trade for Trade segment.

Impact Justification

Regular periodic update affecting multiple securities under surveillance framework. Impacts trading conditions for 28+ stocks with various stage movements and exits from ESM.