Enhanced Surveillance Measure (ESM) - Securities Additions, Stage Changes and Exits effective March 02, 2026

Description

BSE announces changes to the Enhanced Surveillance Measure (ESM) framework effective March 02, 2026, including 4 new securities added, 5 moved to lower ESM stage, and 11 securities exiting the framework.

Summary

BSE has issued an update to the Enhanced Surveillance Measure (ESM) framework effective March 02, 2026. The circular covers three categories: (1) four new securities shortlisted into ESM, (2) no securities moving to a higher ESM stage, five securities moving to a lower ESM stage, and (3) eleven securities exiting the ESM framework entirely. A consolidated list of all securities currently under ESM across various stages is also provided.

Key Points

• 4 securities newly added to ESM framework effective March 02, 2026
• 0 securities moved to higher ESM stage (Nil)
• 5 securities moved to lower ESM stage effective March 02, 2026
• 11 securities exiting the ESM framework effective March 02, 2026
• Vardhman Polytex Ltd (514175) added as per NSE designation
• Two SME scrips (Earkart Ltd, Gautam Exim Ltd) are exiting the framework
• Securities marked (~) will continue in Trade for Trade settlement as per circulars dated November 27, 2025 and January 05, 2026

Regulatory Changes

Newly Added to ESM (Annexure I - Part A):

Moved to Lower ESM Stage:

Exiting ESM Framework (Annexure II):

*#(SME Scrip) | (As per NSE)

Compliance Requirements

• Brokers and market participants must apply ESM trading conditions (trade-for-trade settlement, periodic call auction, etc.) for the 4 newly added securities from March 02, 2026
• Trading members must update their systems to reflect the revised ESM stage designations for 5 securities moving to lower stages
• Normal trading conditions may be restored for the 11 securities exiting ESM, subject to any residual Trade-for-Trade conditions noted under circular references 20251127-51 and 20260105-26
• Securities moving out due to inclusion in SMP ($) or IBC (@) frameworks will be governed by those respective frameworks instead

Important Dates

• Circular Date: February 27, 2026
• Effective Date for All Changes: March 02, 2026
• Reference Circulars for Trade-for-Trade continuation: November 27, 2025 (20251127-51) and January 05, 2026 (20260105-26)

Impact Assessment

Newly Added Securities: Investors holding Mewar Hi-Tech Engineering, Shantidoot Infra Services, Spinaroo Commercial, and Vardhman Polytex will face enhanced surveillance trading restrictions including trade-for-trade settlement and periodic call auction mechanisms, reducing liquidity and increasing settlement risk for short-term traders.

Stage Downgrade (Lower ESM): Ashnisha Industries, Bits Ltd, Chandni Machines, Krishna Capital and Securities, and Switching Technologies Gunther will see marginally relaxed surveillance conditions, potentially improving liquidity slightly for these scrips.

ESM Exits: The 11 exiting securities, including notable names like ABM Knowledgeware and Securekloud Technologies, will transition back to normal trading conditions, which is generally positive for price discovery and liquidity. However, some may continue under Trade-for-Trade settlement per earlier circulars.

Overall Market Impact: The net change represents a moderate tightening of surveillance across the market. The addition of Vardhman Polytex (a relatively larger textile company) as per NSE designation is noteworthy. The consolidated list (Annexure III) provides a complete picture of all securities currently under ESM across Stage I and Stage II designations for reference by market participants.

Impact Justification

ESM changes directly affect trading conditions for 20 securities, imposing or lifting trading restrictions that impact investors, traders, and the companies themselves. New additions face significant trading curbs while exits signal improved compliance standing.