Description

BSE updates the Enhanced Surveillance Measure (ESM) framework, adding new securities with 100% margin requirement and Trade-for-Trade settlement effective April 21-22, 2026.

Summary

BSE has updated its Enhanced Surveillance Measure (ESM) framework as of April 20, 2026. Securities meeting ESM inclusion criteria will attract a minimum 100% margin requirement on all open and new positions from April 22, 2026, and will be moved from Rolling Settlement to the Trade-for-Trade segment. Stage II securities will additionally face a 2% price band and Periodic Call Auction mechanism effective April 21, 2026. The consolidated list of affected securities is provided in Annexure I, II, and III attached to the notice.

Key Points

  • New securities satisfying ESM criteria (listed in Annexure I) will attract minimum 100% margin w.e.f. April 22, 2026, applicable to all open positions as on April 21, 2026 and new positions thereafter.
  • Certain securities will be moved to a lower stage (Stage I) under the ESM framework w.e.f. April 21, 2026.
  • Securities under ESM will shift from Rolling Settlement to Trade-for-Trade segment w.e.f. April 22, 2026.
  • Stage II securities will have a 2% price band and be subject to Periodic Call Auction w.e.f. April 21, 2026.
  • Securities moving out of the ESM framework w.e.f. April 21, 2026 are listed in Annexure II.
  • A consolidated list of all securities under the ESM framework is available in Annexure III.
  • ESM operates in conjunction with all other prevailing surveillance measures imposed by exchanges.
  • Inclusion under ESM is purely a market surveillance action and should not be construed as adverse action against the concerned company or entity.

Regulatory Changes

This notice references and builds upon earlier ESM-related notices:

  • Notice No. 20230602-44 (June 2, 2023)
  • Notice No. 20230718-46 (July 18, 2023)
  • Notice No. 20240809-42 (August 9, 2024)
  • Notice No. 20240920-63 (September 20, 2024)
  • Notice No. 20241004-65 (October 4, 2024)
  • Notice No. 20250725-61 (July 25, 2025)

The current update adds new securities to the ESM list and moves some existing securities to Stage I (lower stage).

Compliance Requirements

  • Trading members must ensure a minimum 100% margin is collected on all open positions in ESM-listed securities as on April 21, 2026, and on new positions from April 22, 2026.
  • Members must adhere to Trade-for-Trade settlement rules for ESM securities.
  • For Stage II securities, trading must comply with the 2% price band and Periodic Call Auction mechanism.
  • Members with queries may contact BSE Surveillance at bse.surv@bseindia.com.

Important Dates

  • April 21, 2026: Stage I reclassification effective; securities moving out of ESM effective; Stage II price band (2%) and Periodic Call Auction effective; 100% margin applies to open positions as of this date.
  • April 22, 2026: 100% margin requirement effective for new positions; Trade-for-Trade settlement begins for newly included ESM securities.

Impact Assessment

The ESM framework update significantly impacts trading in the listed securities by imposing a 100% margin requirement, which increases the cost of holding positions and reduces leverage. The shift from Rolling Settlement to Trade-for-Trade eliminates netting benefits and requires delivery of shares against each trade. Stage II securities face additional restrictions via a narrow 2% price band and Periodic Call Auction, limiting intraday price discovery and liquidity. Securities exiting the ESM framework will have their prior price bands reinstated, unless subject to other surveillance measures. Market participants should review Annexures I, II, and III for the full list of affected securities and plan positions accordingly.

Impact Justification

Directly affects trading conditions for multiple securities — mandating 100% margin, Trade-for-Trade settlement, and 2% price bands — with immediate effective dates of April 21-22, 2026.