Description

BSE notifies securities newly included under Enhanced Surveillance Measure (ESM) attracting 100% margin from April 15, 2026, along with stage revisions and exits from ESM framework effective April 13, 2026.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) framework, notifying securities newly included under ESM that will attract a minimum 100% margin requirement effective April 15, 2026. Additionally, certain securities are being moved to a lower Stage I within the ESM framework, some are shifting to Stage II with a 2% price band under Trade-for-Trade with Periodic Call Auction, and a separate list of securities is exiting the ESM framework — all effective April 13, 2026.

Key Points

  • Securities newly included under ESM (listed in Annexure I) will attract a minimum 100% margin on all open positions as on April 13, 2026 and on new positions created from April 15, 2026.
  • Securities meeting ESM criteria will be shifted from the Rolling Settlement segment to the Trade-for-Trade (TFT) segment effective April 15, 2026.
  • Securities shifting to Stage II of ESM will trade under Trade-for-Trade with a 2% price band and Periodic Call Auction mechanism effective April 13, 2026.
  • Certain securities are being moved to a lower Stage I of the ESM framework effective April 13, 2026 (Annexure I).
  • Securities exiting the ESM framework are listed in Annexure II, effective April 13, 2026.
  • A consolidated list of all securities currently under the ESM framework is provided in Annexure III.
  • ESM operates in conjunction with all other prevailing surveillance measures imposed by the exchanges.
  • Shortlisting under ESM is purely for market surveillance purposes and should not be construed as adverse action against the concerned company or entity.

Regulatory Changes

This notice updates the ESM framework in continuation 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 adds new securities to ESM, revises stages for existing securities, and removes qualifying securities from the framework as part of the periodic review process.

Compliance Requirements

  • Trading Members / Brokers: Must ensure 100% margin collection on ESM-listed securities for all open positions as of April 13, 2026 and all new positions from April 15, 2026.
  • Market Participants: Must note the shift of applicable ESM securities from Rolling Settlement to Trade-for-Trade segment and comply with restricted trading conditions.
  • Members dealing in Stage II securities: Must comply with 2% price band limits and Periodic Call Auction trading mechanism.
  • For clarifications, members may write to bse.surv@bseindia.com.

Important Dates

  • April 13, 2026: Stage I downgrade effective; Stage II Trade-for-Trade with 2% price band and Periodic Call Auction effective; ESM exits (Annexure II) effective; reference date for open positions subject to 100% margin.
  • April 15, 2026: 100% margin requirement effective on open positions (as of April 13, 2026) and new positions; Rolling Settlement to Trade-for-Trade segment migration effective for newly included ESM securities.

Impact Assessment

This circular has a high market impact for traders and investors holding positions in the affected securities. The mandatory 100% margin requirement significantly increases the cost of holding or creating positions, effectively discouraging speculative activity. Migration to Trade-for-Trade settlement eliminates netting benefits and increases settlement obligations, reducing liquidity for these scrips. Stage II securities face additional restrictions with a narrow 2% price band and Periodic Call Auction, severely limiting intraday price movement. Securities exiting the ESM framework will have their pre-ESM price bands reinstated, provided they are not subject to any other surveillance measure. The specific securities affected are detailed in the annexures attached to the original BSE notice.

Impact Justification

This circular imposes significant trading restrictions including mandatory 100% margin requirements and forced migration from Rolling Settlement to Trade-for-Trade segment, materially affecting liquidity and trading conditions for multiple listed securities.