Description

BSE announces new securities entering ESM framework with 100% margin requirement from April 27, 2026, along with securities moving to lower Stage I and securities exiting the framework effective April 24, 2026.

Summary

BSE has updated its Enhanced Surveillance Measure (ESM) framework, adding new securities that will attract a minimum 100% margin requirement effective April 27, 2026. Securities qualifying under ESM will be shifted from Rolling Settlement to Trade-for-Trade segment, with Stage II securities subject to a 2% price band and Periodic Call Auction mechanism effective April 24, 2026. Some securities are also being moved to the lower Stage I, while others are exiting the ESM framework entirely.

Key Points

  • New securities added to ESM (Annexure I) will attract minimum 100% margin on all open positions as on April 24, 2026 and new positions from April 27, 2026
  • Certain securities will move to lower Stage I of the ESM framework effective April 24, 2026
  • All ESM-qualifying securities will shift from Rolling Settlement to Trade-for-Trade segment effective April 27, 2026
  • Stage II securities will face a 2% price band with Periodic Call Auction effective April 24, 2026
  • Securities exiting the ESM framework are listed in Annexure II, effective April 24, 2026
  • A consolidated list of all securities under the framework is provided in Annexure III
  • ESM classification is purely a market surveillance measure and should not be construed as adverse action against the company
  • ESM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

This notice updates the ESM framework originally established under notice no. 20230602-44 (June 2, 2023) and subsequently amended via notices dated July 18, 2023, August 9, 2024, September 20, 2024, October 4, 2024, and July 25, 2025. The current update revises the list of securities under various ESM stages and their associated trading restrictions.

Compliance Requirements

  • Trading members must ensure minimum 100% margin is collected on open positions in newly added ESM securities as on April 24, 2026
  • Members must apply 100% margin on all new positions in ESM securities from April 27, 2026
  • Trading in Stage II ESM securities must comply with 2% price band and Periodic Call Auction mechanism
  • Members should note the shift from Rolling Settlement to Trade-for-Trade for all ESM securities
  • For clarifications, members may contact bse.surv@bseindia.com

Important Dates

  • April 24, 2026: Securities moving to Stage I take effect; Stage II price band (2%) and Periodic Call Auction apply; securities exiting ESM framework are removed
  • April 27, 2026: Minimum 100% margin applies on all open positions; new positions in ESM securities attract 100% margin; shift from Rolling Settlement to Trade-for-Trade segment effective

Impact Assessment

The addition of new securities to ESM significantly impacts their tradability by requiring 100% upfront margin, effectively restricting leveraged trading. The shift to Trade-for-Trade eliminates netting benefits and increases settlement obligations for market participants. Stage II securities face further restrictions through a narrow 2% price band and Periodic Call Auction, severely limiting intraday price movement and liquidity. Securities exiting the ESM framework will revert to their pre-ESM price bands, unless subject to another surveillance measure. The measure affects retail and institutional traders holding or planning positions in the listed securities.

Impact Justification

Directly affects trading conditions for multiple securities including mandatory 100% margin, shift to Trade-for-Trade segment, and price band restrictions, impacting liquidity and trading strategies for affected stocks.