Description

BSE announces updates to the Enhanced Surveillance Measure (ESM) framework effective March 04, 2026, including one new addition, three securities moving to higher ESM stages, and one security exiting the framework.

Summary

BSE has issued updates to the Enhanced Surveillance Measure (ESM) framework effective March 04, 2026. One new security has been shortlisted for inclusion in ESM, three securities have been moved to higher ESM stages, none have been moved to lower stages, and one security has exited the ESM framework due to inclusion in the IBC (Insolvency and Bankruptcy Code) framework.

Key Points

  • New ESM Inclusion (Annexure I - Part A): Jai Mata Glass Ltd (Scrip Code: 523467, ISIN: INE250C01027) added to ESM w.e.f. March 04, 2026.
  • Moved to Higher ESM Stage: Three securities escalated to a higher ESM stage w.e.f. March 04, 2026:
    • Baba Arts Ltd (532380, INE893A01036)
    • Ranjit Securities Ltd (531572, INE863D01017)
    • Universus Photo Imagings Ltd (542933, INE03V001013)
  • Moved to Lower ESM Stage: Nil — no securities downgraded to a lower ESM stage.
  • Exiting ESM Framework (Annexure II): Galada Power & Telecommunication Ltd (504697, INE255C01026) is moving out of the ESM framework due to inclusion in the IBC framework (marked @).
  • A consolidated list of all securities currently under ESM (Annexure III) lists over 29 securities across ESM Stage I and Stage II, including both regular and SME scrips (#) and NSE-designated scrips (*).

Regulatory Changes

  • The ESM framework is being updated in accordance with SEBI surveillance guidelines. Securities under ESM are subject to Trade-for-Trade settlement and may face additional margin and periodic call auction restrictions depending on their ESM stage.
  • As per circular 20251127-51 and 20260105-26 dated November 27, 2025, certain exiting scrips will continue in Trade-for-Trade settlement even after ESM exit.
  • Securities marked ($) exit ESM due to inclusion in the SMP (Short-term Margin Plus) Framework; securities marked (@) exit due to inclusion in the IBC Framework.

Compliance Requirements

  • Brokers and Trading Members: Must update client-facing systems and risk frameworks to reflect revised ESM stage classifications and new inclusions effective March 04, 2026.
  • Investors holding affected securities: Should be aware that ESM-listed securities are subject to Trade-for-Trade settlement; intraday trading is not permitted.
  • Members should refer to the consolidated Annexure III for the full updated list of securities under ESM and their respective stages.

Important Dates

  • Effective Date: March 04, 2026 — all ESM additions, stage changes, and exits take effect.
  • Circular Date: March 02, 2026.

Impact Assessment

The addition of Jai Mata Glass Ltd to ESM and the escalation of Baba Arts Ltd, Ranjit Securities Ltd, and Universus Photo Imagings Ltd to higher ESM stages will increase trading restrictions on these securities, limiting them to periodic call auctions and Trade-for-Trade settlement. This reduces liquidity and may lead to price discovery challenges for retail investors holding these scrips. The exit of Galada Power & Telecommunication Ltd from ESM (due to IBC proceedings) signals ongoing corporate stress rather than improved market behaviour. Overall, the net effect is a tightening of surveillance conditions across the affected securities.

Impact Justification

Directly restricts trading conditions for multiple securities; new ESM inclusions and stage escalations impose additional trading curbs on investors and market participants effective within two trading days.