Description
BSE announces inclusion of new securities under Enhanced Surveillance Measure (ESM) with 100% margin requirement from May 19, 2026, along with stage movements and exits from the ESM framework effective May 18, 2026.
Summary
BSE has updated its Enhanced Surveillance Measure (ESM) framework as of May 15, 2026 (Notice No. 20260515-33). New securities meeting ESM criteria will attract a minimum 100% margin from May 19, 2026 and will be shifted from Rolling Settlement to Trade-for-Trade segment. Certain securities are also being moved to a lower stage (Stage I), while others are exiting the ESM framework entirely, all effective May 18, 2026.
Key Points
- Newly included securities (Annexure I) will attract minimum 100% margin on all open positions as on May 18, 2026 and on new positions from May 19, 2026.
- Securities qualifying under ESM will be shifted from Rolling Settlement to Trade-for-Trade segment w.e.f. May 19, 2026.
- Securities under Stage II will trade under Trade-for-Trade with a 2% price band and Periodic Call Auction w.e.f. May 18, 2026.
- Certain securities in ESM are being downgraded to Stage I (lower stage) w.e.f. May 18, 2026, as listed in Annexure I.
- Securities exiting the ESM framework w.e.f. May 18, 2026 are listed in Annexure II.
- A consolidated list of all securities currently under ESM is provided in Annexure III.
- ESM operates in conjunction with all other prevailing surveillance measures imposed by the exchanges.
- Shortlisting under ESM is purely a surveillance action and should not be construed as an adverse action against the concerned company.
Regulatory Changes
This notice updates the ESM framework previously established under notices:
- 20230602-44 (June 02, 2023)
- 20230718-46 (July 18, 2023)
- 20240809-42 (August 09, 2024)
- 20240920-63 (September 20, 2024)
- 20241004-65 (October 04, 2024)
- 20250725-61 (July 25, 2025)
The price band of a scrip exiting ESM will be reinstated to the band applicable before it was shortlisted, unless the scrip remains under another surveillance measure, in which case that framework’s price band prevails.
Compliance Requirements
- Trading members must ensure minimum 100% margin is collected on ESM-listed securities for all open positions as on May 18, 2026 and new positions from May 19, 2026.
- Members must comply with Trade-for-Trade settlement rules for all newly included ESM securities from May 19, 2026.
- For Stage II securities, members must adhere to the 2% price band and Periodic Call Auction mechanism from May 18, 2026.
- Members may direct clarifications to bse.surv@bseindia.com.
Important Dates
| Date | Event |
|---|---|
| May 15, 2026 | Notice issued |
| May 18, 2026 | Stage I downgrade effective; Stage II price band/call auction effective; ESM exits effective |
| May 19, 2026 | 100% margin requirement effective on new ESM inclusions; shift to Trade-for-Trade effective |
Impact Assessment
This circular has a high market impact for traders and investors holding positions in the affected securities. The imposition of 100% margin significantly increases the capital requirement for holding ESM-listed scrips, likely reducing liquidity and trading volumes in those securities. The shift to Trade-for-Trade eliminates netting benefits and increases settlement risk awareness. Stage II securities face further restrictions with a tight 2% price band and auction-based price discovery, severely limiting intraday price movement. Market participants should review Annexures I, II, and III carefully to identify affected holdings and adjust margin funding accordingly before May 18–19, 2026.
Impact Justification
Directly affects trading conditions for multiple securities by imposing 100% margin, shifting from rolling to trade-for-trade settlement, and applying 2% price bands — significant operational impact on market participants holding or trading affected scrips.