Description

BSE updates the Enhanced Surveillance Measure (ESM) framework: Sadbhav Engineering Ltd is newly shortlisted, Transglobe Foods Ltd moves to a higher ESM stage, and no securities are exiting the ESM framework, all effective February 27, 2026.

Summary

BSE has issued an update to the Enhanced Surveillance Measure (ESM) framework effective February 27, 2026. One security — Sadbhav Engineering Ltd (Scrip Code: 532710) — has been newly shortlisted under the ESM framework. Transglobe Foods Ltd (Scrip Code: 519367) is being moved to a higher ESM stage. No securities are being moved to a lower ESM stage, and no securities are exiting the ESM framework in this update. A consolidated list of all securities currently under ESM is also provided (Annexure III).

Key Points

  • Newly added to ESM (Part A, Annexure I): Sadbhav Engineering Ltd | Scrip Code: 532710 | ISIN: INE226H01026
  • Moved to higher ESM stage: Transglobe Foods Ltd | Scrip Code: 519367 | ISIN: INE213P01027
  • Moved to lower ESM stage: Nil
  • Moving out of ESM framework: Nil
  • All changes are effective from February 27, 2026
  • The consolidated list (Annexure III) includes numerous securities across ESM Stage I and Stage II
  • Securities marked * are as per NSE; securities marked # are SME scrips
  • Per circulars 20251127-51 and 20260105-26, certain securities will continue in Trade for Trade settlement even after ESM changes

Regulatory Changes

  • Sadbhav Engineering Ltd is placed under the ESM framework for the first time under this update, subjecting it to ESM-related trading restrictions.
  • Transglobe Foods Ltd is escalated to a higher ESM stage, implying stricter surveillance and potentially more restrictive trading conditions.
  • No downgrade or removal of any security from ESM was effected in this cycle.

Compliance Requirements

  • Trading members and brokers must ensure compliance with ESM trading restrictions for all newly added and stage-upgraded securities effective February 27, 2026.
  • Investors holding or intending to trade in ESM-listed securities should note that these securities are subject to trade-for-trade settlement, reduced price bands, and periodic review.
  • Clearing members must apply appropriate margin and settlement procedures for ESM securities.
  • Members should refer to the consolidated list (Annexure III) for the complete and current ESM universe.

Important Dates

  • Effective Date: February 27, 2026 — all additions, stage upgrades, and the updated consolidated list come into force.
  • Reference Circulars: 20251127-51 (November 27, 2025) and 20260105-26 (January 5, 2026) for Trade for Trade continuation rules.

Impact Assessment

  • Sadbhav Engineering Ltd (532710): Inclusion in ESM will impose trade-for-trade settlement and stricter price bands, significantly reducing liquidity and increasing transaction costs for investors. This is a notable addition given the company’s profile in the infrastructure sector.
  • Transglobe Foods Ltd (519367): Escalation to a higher ESM stage signals continued regulatory concern over the scrip’s trading patterns, with even more restrictive conditions now applying.
  • Market-wide: The absence of any securities exiting the ESM framework this cycle indicates no improvement in surveillance status for currently listed ESM securities, maintaining elevated restrictions across the ESM universe.
  • Retail and institutional investors with positions in ESM securities should reassess liquidity risk given the trade-for-trade mechanism and applicable price band restrictions.

Impact Justification

ESM placements impose significant trading restrictions (trade-for-trade settlement, price bands) on affected securities, directly impacting liquidity and investor ability to trade. Addition of a well-known mid-cap like Sadbhav Engineering Ltd elevates the significance of this circular.