Description

BSE updates the Enhanced Surveillance Measure (ESM) framework, adding securities under 100% margin requirement and Trade-for-Trade segment from April 10, 2026, with some securities moved to lower Stage I and others exiting the framework.

Summary

BSE has updated its Enhanced Surveillance Measure (ESM) framework effective April 9-10, 2026. Newly added securities will attract a minimum 100% margin requirement and be shifted from Rolling Settlement to Trade-for-Trade segment. Some securities are being moved to a lower stage (Stage I), while others are exiting the framework entirely. The full lists are provided in annexures to the notice.

Key Points

  • Securities newly included under ESM will attract minimum 100% margin w.e.f. April 10, 2026 on all open positions as on April 9, 2026 and new positions from April 10, 2026
  • Certain securities are being moved to lower Stage I under ESM Framework w.e.f. April 9, 2026
  • Securities qualifying under ESM will be shifted from Rolling Settlement to Trade-for-Trade segment w.e.f. April 10, 2026
  • Securities shifting to Stage II will be under Trade for Trade with a 2% price band and Periodic Call Auction w.e.f. April 9, 2026
  • Securities exiting the ESM framework w.e.f. April 9, 2026 are listed in Annexure II
  • A consolidated list of all securities under the framework is provided in Annexure III
  • ESM shortlisting is purely for market surveillance purposes and should not be construed as adverse action against the company
  • Price bands for securities exiting the framework will revert to pre-ESM levels, subject to no other surveillance measure applying

Regulatory Changes

This notice references and builds upon prior ESM 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 implements the periodic review of securities under the ESM framework, resulting in additions, stage changes, and removals.

Compliance Requirements

  • Members/brokers must ensure minimum 100% margin is collected on ESM-listed securities for all open positions as of April 9, 2026 and new positions from April 10, 2026
  • Trading in newly included ESM securities must be conducted in Trade-for-Trade mode from April 10, 2026
  • Stage II securities must be traded under Trade-for-Trade with 2% price band and Periodic Call Auction from April 9, 2026
  • Members should review the attached Annexures I, II, and III for the complete and updated list of affected securities
  • For clarifications, members may write to bse.surv@bseindia.com

Important Dates

  • April 8, 2026: Notice date
  • April 9, 2026: Stage I downgrade effective date; Stage II price band and Periodic Call Auction effective; securities exit ESM framework
  • April 10, 2026: 100% margin requirement effective; shift from Rolling Settlement to Trade-for-Trade segment effective for newly included securities

Impact Assessment

This circular has a high impact on market participants trading in the affected securities. The mandatory 100% margin requirement significantly increases the capital needed to hold or create positions in ESM-listed stocks, effectively restricting leveraged trading. The shift to Trade-for-Trade settlement eliminates netting benefits and requires full delivery/payment for each trade, increasing operational burden. The 2% price band on Stage II securities severely limits intraday price movement, reducing liquidity. Securities exiting the framework will see trading conditions normalise, which may result in increased activity. The ESM framework continues to operate in conjunction with other surveillance measures such as ASM, GSM, and IBC surveillance.

Impact Justification

Affects multiple securities with significant trading restrictions including 100% margin requirements and shift to Trade-for-Trade segment, directly impacting market participants' positions and trading strategies.