Description

BSE announces securities moving into ESM framework attracting 100% margin from May 20, 2026, along with stage movements and securities exiting the framework effective May 19-20, 2026.

Summary

BSE has updated its Enhanced Surveillance Measure (ESM) framework, identifying securities for inclusion, stage movements (to lower Stage I), and removal from the framework. Securities newly included in ESM will attract a minimum 100% margin on all positions from May 20, 2026, and will be shifted from Rolling Settlement to Trade-for-Trade settlement.

Key Points

  • Securities listed in Annexure I are newly included under ESM and will attract minimum 100% margin w.e.f. May 20, 2026 on all open positions as on May 19, 2026 and new positions created from May 20, 2026
  • Certain securities will be moved to lower Stage I under ESM Framework w.e.f. May 19, 2026 (listed in Annexure I)
  • Securities qualifying under ESM will be shifted from Rolling Settlement to Trade-for-Trade segment w.e.f. May 20, 2026
  • Securities shifting to Stage II will be under Trade for Trade with a 2% price band and Periodic Call Auction w.e.f. May 19, 2026
  • Securities moving out of the ESM Framework w.e.f. May 19, 2026 are listed in Annexure II
  • A consolidated list of all securities under the framework is provided in Annexure III
  • ESM framework operates in conjunction with all other prevailing surveillance measures

Regulatory Changes

This notice updates the ESM framework previously established under 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 modifies the list of securities under ESM by adding new securities, moving some to a lower stage, and removing others from the framework.

Compliance Requirements

  • Members/brokers must ensure minimum 100% margin is collected on all open positions in newly included ESM securities as on May 19, 2026
  • Members must apply 100% margin on new positions in ESM securities created from May 20, 2026
  • Trading in affected securities must be conducted in Trade-for-Trade mode from the applicable effective date
  • Securities in Stage II must be traded with a 2% price band under Periodic Call Auction
  • For clarifications, members may contact bse.surv@bseindia.com

Important Dates

  • May 19, 2026: Stage I downgrade effective; securities moving out of ESM framework effective; Stage II Trade-for-Trade with 2% price band and Periodic Call Auction effective
  • May 20, 2026: 100% margin requirement effective for newly included ESM securities; shift from Rolling Settlement to Trade-for-Trade segment effective

Impact Assessment

The ESM framework changes have a high trading impact on affected securities. Securities newly placed under ESM face significant liquidity constraints due to the 100% margin requirement and shift to Trade-for-Trade settlement, which eliminates netting benefits for traders. The 2% price band for Stage II securities further restricts price movement. Market participants should review the attached annexures to identify affected holdings. BSE clarifies that ESM inclusion is a market surveillance measure and should not be construed as adverse action against the concerned companies.

Impact Justification

Affects multiple securities with mandatory 100% margin requirement, segment shift from Rolling Settlement to Trade-for-Trade, and price band restrictions — significant operational and trading impact for affected stocks.