Description

BSE updates the Enhanced Surveillance Measure (ESM) framework, adding new securities with 100% margin requirements effective April 30, 2026, moving select securities to Stage I, and releasing others from the framework effective April 29, 2026.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) framework under Notice No. 20260428-41. New securities meeting ESM criteria (Annexure I) will attract a minimum 100% margin on all open and new positions effective April 30, 2026. Certain securities are being downgraded to Stage I, others are being moved out of the framework, and Stage II securities will trade under a 2% price band with Periodic Call Auction from April 29, 2026.

Key Points

  • Securities in Annexure I newly included under ESM will attract minimum 100% margin w.e.f. April 30, 2026 on open positions as on April 29, 2026 and all new positions thereafter.
  • Select securities are being moved to a lower stage (Stage I) under the ESM framework w.e.f. April 29, 2026.
  • All ESM-qualified securities will be shifted from Rolling Settlement to Trade-for-Trade segment w.e.f. April 30, 2026.
  • Stage II securities will be placed under Trade-for-Trade with a 2% price band and Periodic Call Auction w.e.f. April 29, 2026.
  • Securities exiting the ESM framework (Annexure II) will revert to their pre-ESM price band, unless subject to another surveillance measure.
  • A consolidated list of all securities currently under ESM is provided in Annexure III.
  • ESM framework operates in conjunction with all other prevailing surveillance measures imposed by exchanges.
  • Shortlisting under ESM is purely a market surveillance action and should not be construed as adverse action against the company.

Regulatory Changes

This notice is issued with reference to prior ESM-related 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 revises the composition of securities under ESM stages, enforces mandatory 100% margin for newly included securities, and mandates settlement mechanism changes.

Compliance Requirements

  • Members (brokers/trading members) must ensure minimum 100% margin is collected on all open positions (as on April 29, 2026) and new positions in newly added ESM securities from April 30, 2026.
  • Trading in newly included and continuing ESM securities must be conducted in Trade-for-Trade segment from April 30, 2026.
  • Stage II securities must be traded with a 2% price band under Periodic Call Auction mechanism from April 29, 2026.
  • For clarifications, members may contact BSE Surveillance at bse.surv@bseindia.com.

Important Dates

  • April 28, 2026: Notice issued.
  • April 29, 2026: Stage I reclassification effective; securities exit ESM (Annexure II); Stage II Periodic Call Auction with 2% price band effective.
  • April 30, 2026: 100% margin requirement effective for newly added ESM securities; shift to Trade-for-Trade segment effective.

Impact Assessment

The ESM framework update has significant market impact on affected securities. Newly included stocks face mandatory 100% margin requirements, substantially increasing the cost of holding positions and likely reducing liquidity. The shift from Rolling Settlement to Trade-for-Trade eliminates netting benefits and increases settlement risk for traders. Stage II securities face both a 2% price band and Periodic Call Auction, severely restricting price discovery and intraday trading. Securities exiting the framework benefit from restored price bands and normal settlement, improving their tradability. Market participants should review the Annexures to identify affected holdings and adjust risk management accordingly.

Impact Justification

Directly affects trading conditions for multiple securities including mandatory 100% margin, shift to Trade-for-Trade settlement, and 2% price band restrictions — significant operational and liquidity impact on affected stocks.