Description

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

Summary

BSE has issued updates to the Enhanced Surveillance Measure (ESM) Framework effective February 10, 2026. Four new securities are being added to the ESM framework, five securities are being moved to higher ESM stages, and no securities are being moved to lower stages or removed from the framework. The circular includes a consolidated list of 24 securities currently under ESM surveillance across Stage I and Stage II.

Key Points

  • 4 new securities added to ESM framework: Garware Synthetics Ltd, Gopal Iron & Steels Company Gujarat Ltd, Hit Kit Global Solutions Ltd, and Pajson Agro India Ltd (SME)
  • 5 securities moving to higher ESM stages: Gujarat Investa Ltd, Indian Link Chain Manufacturers Ltd, Oxford Industries Ltd, S.A.L. Steel Ltd, and Tirth Plastic Ltd
  • No securities moving to lower ESM stages
  • No securities being removed from ESM framework
  • Consolidated list contains 24 securities under ESM surveillance (mix of Stage I and Stage II)
  • Changes effective from February 10, 2026

Regulatory Changes

The ESM Framework continues to monitor securities based on predefined surveillance criteria. Securities can be placed at different stages (Stage I, Stage II, etc.) based on their risk profile and market behavior. Higher stages typically involve stricter surveillance and trading restrictions.

Compliance Requirements

  • Market participants must be aware of the ESM status of these securities
  • Trading in ESM securities may be subject to specific conditions including trade-for-trade settlement, price bands, and other restrictions
  • Investors should exercise caution when trading in ESM securities
  • Brokers and trading members must ensure compliance with ESM framework requirements for affected securities

Important Dates

  • Effective Date: February 10, 2026 - All ESM changes become applicable

Impact Assessment

Market Impact: Medium - The ESM framework affects liquidity and trading patterns in the listed securities. Securities under ESM typically experience reduced liquidity due to trade-for-trade requirements and enhanced margin obligations.

Investor Impact: Investors holding or trading these securities will face stricter surveillance measures, potentially including higher margins, reduced leverage, and trade-for-trade settlement mechanisms.

Operational Impact: Trading members need to update their systems to reflect the new ESM classifications and ensure appropriate risk management controls are in place for these securities.

The inclusion of securities in ESM is a preventive surveillance measure aimed at protecting investor interests by alerting market participants to securities exhibiting abnormal price movements or other concerning patterns.

Impact Justification

Affects trading conditions for multiple securities by placing them under enhanced surveillance, which impacts liquidity and trading mechanisms for these stocks. Regular surveillance update with moderate market-wide impact.