Description

BSE updates the Enhanced Surveillance Measure (ESM) framework with new inclusions, stage movements, and exclusions effective April 20-21, 2026, imposing 100% margin and Trade-for-Trade settlement on affected securities.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) framework as of April 17, 2026. New securities have been added to the framework and will attract a minimum 100% margin requirement effective April 21, 2026. Additionally, some securities are being moved to a lower stage (Stage I), some are exiting the framework, and Stage II securities will be subject to a 2% price band with Periodic Call Auction.

Key Points

  • Securities in Annexure I satisfy ESM inclusion criteria and will attract minimum 100% margin w.e.f. April 21, 2026 on all open and new positions
  • Certain securities will be moved to Stage I (lower stage) under ESM w.e.f. April 20, 2026
  • A consolidated list of all securities under ESM is provided in Annexure III
  • ESM securities will be shifted from Rolling Settlement to Trade-for-Trade segment w.e.f. April 21, 2026
  • Stage II securities will have a 2% price band and Periodic Call Auction w.e.f. April 20, 2026
  • Securities exiting the ESM framework are listed in Annexure II, effective April 20, 2026
  • ESM operates in conjunction with all other prevailing surveillance measures
  • Inclusion under ESM is purely a surveillance action and should not be construed as adverse action against the company

Regulatory Changes

This notice references and updates the ESM framework originally established through prior notices (20230602-44, 20230718-46, 20240809-42, 20240920-63, 20241004-65, 20250725-61). Securities moving out of ESM will have their price bands reinstated to pre-ESM levels, unless subject to another surveillance measure.

Compliance Requirements

  • Members must ensure 100% margin collection on all open positions as on April 20, 2026 and new positions from April 21, 2026 for newly included ESM securities
  • Trading in ESM securities must comply with Trade-for-Trade settlement rules from April 21, 2026
  • Stage II securities must be traded within the 2% price band under Periodic Call Auction mechanism from April 20, 2026
  • For clarifications, members may contact bse.surv@bseindia.com

Important Dates

  • April 20, 2026: Stage movement to lower Stage I effective; securities exiting ESM framework effective; Stage II 2% price band and Periodic Call Auction effective; reference date for open positions attracting 100% margin
  • April 21, 2026: Minimum 100% margin requirement effective for new ESM inclusions; shift from Rolling Settlement to Trade-for-Trade segment effective

Impact Assessment

This circular has a high market impact as it restricts trading conditions for the affected securities by mandating 100% margin requirements and Trade-for-Trade settlement, significantly reducing leverage and liquidity. Stage II securities face further restrictions via a tight 2% price band and Periodic Call Auction, limiting intraday price movement. Traders and investors holding or planning positions in the listed securities must reassess risk exposure and capital requirements. Securities exiting the framework will see trading conditions normalized, potentially improving their liquidity.

Impact Justification

Imposes 100% margin requirement and shifts securities to Trade-for-Trade settlement, directly affecting trading conditions and liquidity for multiple listed equities.