Description
BSE announces new securities added to Enhanced Surveillance Measure (ESM) framework with mandatory 100% margin requirement effective April 29, 2026, along with stage movements and securities exiting the framework.
Summary
BSE has updated the Enhanced Surveillance Measure (ESM) framework, adding new securities that will attract a minimum 100% margin requirement effective April 29, 2026. Securities entering Stage II will move to Trade-for-Trade with a 2% price band and Periodic Call Auction from April 28, 2026. Some securities are being downgraded to Stage I, while others are exiting the framework entirely.
Key Points
- New securities meeting ESM criteria will attract minimum 100% margin on all open positions as on April 28, 2026 and new positions from April 29, 2026
- ESM securities will be shifted from Rolling Settlement segment to Trade-for-Trade segment w.e.f. April 29, 2026
- Securities moving to Stage II will trade under Trade-for-Trade with a 2% price band and Periodic Call Auction w.e.f. April 28, 2026
- Certain securities are being moved to lower Stage I under ESM Framework w.e.f. April 28, 2026
- Securities exiting the ESM framework are listed in Annexure II, effective April 28, 2026
- A consolidated list of all securities under the ESM framework is provided in Annexure III
- ESM framework operates in conjunction with all other prevailing surveillance measures
- Shortlisting under ESM is purely for market surveillance purposes and is not an adverse action against the concerned company
Regulatory Changes
This notice is issued with reference to earlier Exchange 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 the existing ESM framework criteria to newly qualifying securities and revises stage classifications for previously listed securities.
Compliance Requirements
- Brokers/Members: Must apply minimum 100% margin on all open positions as on April 28, 2026 and on new positions created from April 29, 2026 for newly included ESM securities
- Trading Members: Must route trades in ESM securities through Trade-for-Trade settlement from April 29, 2026
- Stage II securities: Must comply with 2% price band and Periodic Call Auction trading mechanism from April 28, 2026
- Price Band Reinstatement: For securities exiting ESM, the pre-ESM price band will be restored unless the security remains under another surveillance measure
- Members may direct clarification queries to bse.surv@bseindia.com
Important Dates
| Date | Event |
|---|---|
| April 27, 2026 | Notice issued |
| April 28, 2026 | Stage I downgrade effective; Stage II (2% price band + Periodic Call Auction) effective; ESM exits effective |
| April 29, 2026 | 100% margin requirement effective on new positions; shift to Trade-for-Trade segment effective |
Impact Assessment
Securities newly added to ESM face significantly restricted trading conditions: mandatory 100% margin eliminates leverage, the shift to Trade-for-Trade eliminates netting benefits for intraday traders, and Stage II securities face a tight 2% daily price band with Periodic Call Auction instead of continuous trading. These measures substantially reduce liquidity and increase the cost of holding positions in affected securities. Market participants with existing open positions in these securities as of April 28, 2026 must ensure sufficient margin is available by April 29, 2026. Securities exiting the framework will see trading restrictions lifted and price bands restored to pre-ESM levels, potentially improving liquidity.
Impact Justification
ESM inclusions impose 100% margin requirements and shift securities to Trade-for-Trade settlement, significantly restricting trading conditions for affected stocks and directly impacting traders holding positions.