Description

BSE updates the Enhanced Surveillance Measure (ESM) framework with new securities attracting 100% margin from April 13, 2026, stage movements, and securities exiting the framework effective April 10, 2026.

Summary

BSE has updated its Enhanced Surveillance Measure (ESM) framework effective April 10–13, 2026. New securities meeting ESM criteria will attract a minimum 100% margin from April 13, 2026. Some securities currently under ESM will be moved to a lower stage (Stage I), while others will exit the framework entirely. Securities shifting to Stage II will be placed under Trade-for-Trade with a 2% price band and Periodic Call Auction.

Key Points

  • New securities included under ESM will attract minimum 100% margin on all open positions as on April 10, 2026, and new positions from April 13, 2026.
  • Certain securities will be moved to a lower stage (Stage I) under the ESM framework effective April 10, 2026.
  • Securities qualifying under ESM will be shifted from Rolling Settlement to Trade-for-Trade segment effective April 13, 2026.
  • Securities shifting to Stage II will be under Trade-for-Trade with a 2% price band and Periodic Call Auction effective April 10, 2026.
  • Securities exiting the ESM framework are listed in Annexure II, effective April 10, 2026.
  • A consolidated list of all securities under ESM is provided in Annexure III.
  • ESM framework operates in conjunction with all other prevailing surveillance measures.
  • Shortlisting under ESM is purely for market surveillance purposes and does not constitute adverse action against the company.

Regulatory Changes

This notice updates the ESM framework in reference to prior notices dated June 2, 2023; July 18, 2023; August 9, 2024; September 20, 2024; October 4, 2024; and July 25, 2025. The current update revises the list of securities under ESM, including new entrants, stage downgrades, and exits.

Compliance Requirements

  • Trading members must ensure minimum 100% margin is collected on open positions in newly included ESM securities as on April 10, 2026, and on new positions from April 13, 2026.
  • Members must comply with Trade-for-Trade settlement requirements for ESM securities.
  • For Stage II securities, members must adhere to the 2% price band and Periodic Call Auction mechanism.
  • Price band on exiting securities will be reinstated to the pre-ESM applicable band unless the security is under another surveillance measure.
  • For clarifications, members may contact bse.surv@bseindia.com.

Important Dates

  • April 10, 2026: Stage I downgrade effective; securities exit ESM framework; Stage II Trade-for-Trade with 2% price band and Periodic Call Auction begins.
  • April 13, 2026: 100% margin requirement effective for newly included ESM securities; shift from Rolling Settlement to Trade-for-Trade segment effective.

Impact Assessment

The imposition of 100% margin and the shift to Trade-for-Trade settlement significantly restricts leveraged trading in affected securities, reducing liquidity and increasing the cost of holding positions. The 2% price band on Stage II securities further limits intraday price movement. Market participants holding positions in newly included ESM securities must ensure adequate margin availability by April 10–13, 2026. Securities exiting the framework will see restored trading conditions, improving their liquidity profile.

Impact Justification

Imposes 100% margin requirements and shifts securities to Trade-for-Trade segment, directly affecting trading conditions and liquidity for the listed securities.