Description

BSE updates the Enhanced Surveillance Measure (ESM) framework, adding securities to ESM with 100% margin requirement effective April 9, 2026, and moving certain securities to lower Stage I or out of the framework effective April 8, 2026.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) framework effective April 8–9, 2026. Newly included securities will attract a minimum 100% margin and will be shifted from Rolling Settlement to Trade-for-Trade segment. Securities moving to Stage II will also face a 2% price band with Periodic Call Auction. Certain securities are being downgraded to Stage I or removed from ESM altogether.

Key Points

  • Securities in Annexure I newly included under ESM will attract minimum 100% margin on all open positions as on April 8, 2026 and new positions from April 9, 2026
  • Newly included ESM securities will shift from Rolling Settlement to Trade-for-Trade segment w.e.f. April 9, 2026
  • Securities moving to Stage II will be under Trade for Trade with a 2% price band and Periodic Call Auction w.e.f. April 8, 2026
  • Certain securities in Annexure I are being moved to a lower stage (Stage I) under ESM w.e.f. April 8, 2026
  • Securities listed in Annexure II are moving out of the ESM framework w.e.f. April 8, 2026
  • A consolidated list of all securities under the ESM framework is provided in Annexure III
  • ESM shortlisting is purely for market surveillance and should not be construed as adverse action against the company
  • Price bands for securities exiting ESM will be reinstated to pre-ESM levels, unless subject to another surveillance measure

Regulatory Changes

This notice references and updates the ESM framework established through a series of prior notices: 20230602-44 (June 2, 2023), 20230718-46 (July 18, 2023), 20240809-42 (August 9, 2024), 20240920-63 (September 20, 2024), 20241004-65 (October 4, 2024), and 20250725-61 (July 25, 2025). The current update revises the list of securities under each stage of the ESM framework as part of its periodic review.

Compliance Requirements

  • Trading members must ensure minimum 100% margin is collected on open positions in newly added ESM securities from April 9, 2026
  • Members must note the shift of applicable securities from Rolling Settlement to Trade-for-Trade segment
  • For Stage II securities, trading must comply with the 2% price band and Periodic Call Auction mechanism
  • Members should refer to the full annexures (I, II, III) attached to the notice for the complete and updated list of securities
  • For clarifications, members may contact BSE Surveillance at bse.surv@bseindia.com

Important Dates

  • April 8, 2026: Securities moved to Stage I (downgrade within ESM) take effect; Stage II price band and Periodic Call Auction take effect; securities in Annexure II exit ESM framework
  • April 9, 2026: 100% margin requirement effective on new positions; newly included securities shift to Trade-for-Trade segment
  • April 8, 2026 (EOD): 100% margin applicable on all open positions as of this date

Impact Assessment

This circular has a high market impact on traders and investors holding positions in the affected securities. The mandatory 100% margin requirement significantly increases the capital required to hold positions, potentially forcing margin-constrained participants to reduce or close positions. The shift to Trade-for-Trade settlement eliminates netting benefits and increases settlement obligations. Stage II securities face an additional constraint with the 2% price band, severely limiting intraday price movement and liquidity. Conversely, securities exiting ESM (Annexure II) will see improved trading conditions with restored price bands and settlement mechanisms, likely improving liquidity for those scrips.

Impact Justification

Directly affects trading conditions for multiple securities including mandatory 100% margin, shift to Trade-for-Trade segment, and 2% price band for Stage II securities, with immediate effective dates of April 8-9, 2026.