Description

BSE updates the list of securities under Enhanced Surveillance Measure framework, with 4 new additions and 5 securities moving to higher ESM stages effective February 10, 2026.

Summary

BSE has issued an update to the Enhanced Surveillance Measure (ESM) framework effective February 10, 2026. Four new securities are being added to the ESM framework, five existing securities will move to higher ESM stages, and no securities are being removed from the framework or moved to lower stages. The circular also provides a consolidated list of 24 securities currently under various ESM stages.

Key Points

  • 4 securities newly shortlisted for 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 or exiting the framework
  • Consolidated list includes 24 securities across Stage I and Stage II ESM
  • Changes effective from February 10, 2026

Regulatory Changes

The ESM framework applies graded surveillance measures to securities based on specific criteria. Securities in the framework are subject to additional monitoring and trading restrictions designed to protect investor interests. The movement of securities to higher stages indicates increased surveillance concerns, while new additions reflect securities meeting ESM criteria for the first time.

Compliance Requirements

  • Market participants must note the ESM classification of affected securities
  • Trading in ESM securities is subject to specific conditions and restrictions based on their stage
  • Investors should exercise additional caution when trading securities under ESM framework
  • Brokers and trading members must ensure compliance with ESM-related trading conditions

Important Dates

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

Impact Assessment

Market Impact: The addition of 4 new securities to ESM and movement of 5 securities to higher stages indicates continued surveillance concerns for these stocks. This may lead to reduced liquidity and increased trading restrictions for affected securities.

Investor Impact: Investors holding or trading these securities should be aware of enhanced surveillance measures which may include price bands, trade-for-trade settlement, or additional margin requirements. The ESM classification serves as a cautionary signal for increased risk.

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

Impact Justification

Regular ESM framework update affecting multiple securities with trading restrictions, important for investors holding or trading these stocks but part of routine surveillance mechanism