Description
BSE announces updates to Enhanced Surveillance Measure (ESM) framework including new inclusions with 100% margin requirement and Trade-for-Trade segment shift effective April 24, 2026, along with stage movements and exits from the framework.
Summary
BSE has updated its Enhanced Surveillance Measure (ESM) framework effective April 23–24, 2026. Securities newly included under ESM (Annexure I) will attract a minimum 100% margin requirement and will be shifted from the Rolling Settlement segment to the Trade-for-Trade (TfT) segment. Securities moving to Stage II under ESM will face an additional 2% price band restriction with Periodic Call Auction. Some securities are being downgraded to Stage I (lower stage), and others are exiting the ESM framework entirely.
Key Points
- Securities in Annexure I will attract minimum 100% margin on all open positions as on April 23, 2026, and on new positions created from April 24, 2026
- Qualifying securities will be shifted from Rolling Settlement to Trade-for-Trade (TfT) segment w.e.f. April 24, 2026
- Securities shifting to Stage II will be placed under TfT with a 2% price band and Periodic Call Auction w.e.f. April 23, 2026
- Certain securities are being moved to Stage I (lower stage) under the ESM framework w.e.f. April 23, 2026
- Securities exiting the ESM framework w.e.f. April 23, 2026 are listed in Annexure II
- 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 and is not an adverse action against the concerned company
Regulatory Changes
This notice updates the ESM framework previously established under the following notices:
- Notice No. 20230602-44 (June 02, 2023)
- Notice No. 20230718-46 (July 18, 2023)
- Notice No. 20240809-42 (August 09, 2024)
- Notice No. 20240920-63 (September 20, 2024)
- Notice No. 20241004-65 (October 04, 2024)
- Notice No. 20250725-61 (July 25, 2025)
The price band for securities exiting the ESM framework will be reinstated to the price band applicable before shortlisting, unless the security is part of another surveillance measure.
Compliance Requirements
- Trading members/brokers must ensure minimum 100% margin is collected on all open positions (as on April 23, 2026) and new positions in ESM-listed securities from April 24, 2026
- Members must adhere to Trade-for-Trade settlement rules for affected securities
- For Stage II securities, trading must comply with 2% price band and Periodic Call Auction mechanism
- Market participants should refer to Annexure I, II, and III for the complete and updated list of affected securities
- Queries and clarifications should be directed to bse.surv@bseindia.com
Important Dates
| Date | Event |
|---|---|
| April 22, 2026 | Notice issued |
| April 23, 2026 | Stage I downgrade effective; Stage II (TfT + 2% price band + Periodic Call Auction) effective; Securities exit ESM framework |
| April 24, 2026 | 100% margin requirement effective on open and new positions; Shift from Rolling Settlement to Trade-for-Trade segment |
Impact Assessment
High impact on trading of affected securities. The 100% margin requirement significantly increases the cost of holding or initiating positions, effectively restricting speculative activity. The shift to Trade-for-Trade settlement eliminates netting benefits and requires full delivery, further constraining liquidity. Stage II securities face additional restrictions via 2% price bands and Periodic Call Auction, making price discovery slower and limiting intraday trading. Retail and institutional traders holding positions in these securities as of April 23, 2026 will face immediate margin calls. Securities exiting ESM will see their trading conditions normalized, potentially improving liquidity.
Impact Justification
Imposes 100% margin on open and new positions and shifts securities from Rolling Settlement to Trade-for-Trade segment, significantly restricting trading conditions for affected stocks. Stage II additions also face 2% price band with Periodic Call Auction, severely limiting liquidity.