Description

BSE updates the Enhanced Surveillance Measure (ESM) framework, adding securities under minimum 100% margin from April 23, 2026, moving select securities to lower Stage I, and releasing others from the framework effective April 22, 2026.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) framework effective April 22–23, 2026. Newly included securities will attract a minimum 100% margin and be shifted from the Rolling Settlement segment to the Trade-for-Trade segment. Securities moving to Stage II will additionally face a 2% price band with Periodic Call Auction. Some securities are being moved to a lower Stage I, while others are being removed from the ESM framework entirely.

Key Points

  • Securities listed in Annexure I are newly included under ESM and will attract minimum 100% margin on all open positions as of April 22, 2026, and on new positions from April 23, 2026.
  • Newly included securities will be shifted from Rolling Settlement to Trade-for-Trade segment w.e.f. April 23, 2026.
  • Securities moving to Stage II will be subject to Trade-for-Trade with a 2% price band and Periodic Call Auction w.e.f. April 22, 2026.
  • Select securities in Annexure I are being moved to a lower Stage (Stage I) under the ESM framework w.e.f. April 22, 2026.
  • Securities exiting the ESM framework (Annexure II) will have their price bands reinstated to pre-ESM levels, subject to no other surveillance measure being applicable.
  • A consolidated list of all securities currently under ESM is provided in Annexure III.
  • ESM operates in conjunction with all other prevailing surveillance measures imposed by the exchanges.

Regulatory Changes

This notice references and builds upon prior ESM framework 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 applies periodic review outcomes — inclusions, stage movements, and exclusions — consistent with the established ESM framework.

Compliance Requirements

  • Trading members must ensure minimum 100% margin is collected on open positions in newly included ESM securities as of April 22, 2026, and on new positions from April 23, 2026.
  • Members must route trades in newly included ESM securities through the Trade-for-Trade segment from April 23, 2026.
  • For Stage II securities, members must adhere to the 2% price band and Periodic Call Auction mechanism effective April 22, 2026.
  • For clarifications, members may contact bse.surv@bseindia.com.

Important Dates

  • April 22, 2026: Stage I downgrade effective; Stage II price band (2%) and Periodic Call Auction effective; ESM exits effective; margin applicable on existing open positions.
  • April 23, 2026: Minimum 100% margin on new positions; shift to Trade-for-Trade segment for newly included securities.

Impact Assessment

The ESM framework update has significant implications for market participants holding or trading in affected securities. The mandatory 100% margin requirement substantially increases the capital needed to maintain positions, reducing leverage and potentially triggering forced liquidations. The shift to Trade-for-Trade eliminates netting benefits and increases settlement obligations. Stage II securities face additional liquidity constraints through the 2% price band and call auction mechanism, which limits intraday price discovery. Securities exiting the framework benefit from restored price bands and settlement norms, improving their trading liquidity. BSE explicitly notes that ESM inclusion is a surveillance action and should not be interpreted as adverse action against the concerned company.

Impact Justification

Directly affects trading conditions for multiple securities by imposing 100% margin requirements, shifting to Trade-for-Trade segment, and applying 2% price bands with Periodic Call Auction for Stage II securities — significant operational and liquidity impact for affected stocks.