Description

BSE announces securities being included in the Enhanced Surveillance Measure (ESM) framework with 100% margin requirement effective May 4, 2026, along with stage movements and removals from the framework effective April 30, 2026.

Summary

BSE has updated the Enhanced Surveillance Measure (ESM) framework, announcing new securities being added, stage downgrades, and removals. Securities newly included under ESM will attract a minimum 100% margin requirement effective May 4, 2026, and will be shifted from Rolling Settlement to Trade-for-Trade segment. Securities moving to Stage II will additionally face a 2% price band and Periodic Call Auction mechanism effective April 30, 2026.

Key Points

  • New securities added to ESM will attract minimum 100% margin on all open positions as on April 30, 2026 and new positions from May 4, 2026
  • Affected securities will be shifted from Rolling Settlement to Trade-for-Trade segment effective May 4, 2026
  • Certain securities currently in ESM will be moved to a lower stage (Stage I) effective April 30, 2026
  • Securities moving to Stage II will be subject to Trade-for-Trade with a 2% price band and Periodic Call Auction effective April 30, 2026
  • Securities exiting the ESM framework will have their previous price bands reinstated, unless subject to another surveillance measure
  • ESM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting under ESM is purely for market surveillance purposes and should not be construed as adverse action against the company

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). Securities lists are provided in three annexures: Annexure I (new inclusions and stage downgrades), Annexure II (securities exiting ESM), and Annexure III (consolidated list under the framework).

Compliance Requirements

  • Trading members must ensure 100% margin is collected on all open positions in newly added ESM securities as on April 30, 2026
  • Members must apply the 100% margin requirement on all new positions in ESM securities created from May 4, 2026
  • Members trading Stage II securities must adhere to the 2% price band and participate under Periodic Call Auction mechanism
  • For clarifications, members may contact BSE Surveillance at bse.surv@bseindia.com

Important Dates

  • April 30, 2026: Stage I downgrade effective; Stage II price band (2%) and Periodic Call Auction effective; securities exit from ESM framework effective
  • May 4, 2026: 100% margin requirement effective on open positions as on April 30, 2026 and all new positions; shift from Rolling Settlement to Trade-for-Trade segment effective

Impact Assessment

This circular has a high market impact on traders and investors holding or planning to take positions in the affected securities. The 100% margin requirement significantly increases the cost of holding positions, while the shift to Trade-for-Trade eliminates netting benefits and increases settlement obligations. The 2% price band for Stage II securities severely limits intraday price movement, reducing liquidity. Market participants should review the attached Annexures I, II, and III to identify specific securities affected and adjust their trading and risk management strategies accordingly.

Impact Justification

Imposes 100% margin requirements and shifts securities to Trade-for-Trade settlement, significantly restricting trading conditions for affected securities. Stage II securities face additional 2% price band and Periodic Call Auction constraints.