Description
NSE updates Enhanced Surveillance Measure framework with stage changes for 35+ securities effective August 26, 2025.
Summary
NSE has updated its Enhanced Surveillance Measure (ESM) framework with stage changes for multiple securities effective August 26, 2025. One new security has been added to ESM Stage-I, two securities have been moved from Stage-I to Stage-II, while no securities have been moved from Stage-II to Stage-I or excluded from the framework.
Key Points
- Kandarp Digi Smart BPO Limited added to ESM Stage-I (will move to BE/ST segment on August 28, 2025)
- Osel Devices Limited and Praxis Home Retail Limited moved from ESM Stage-I to Stage-II
- No securities moved from Stage-II to Stage-I
- No securities excluded from ESM framework
- Total of 35 securities currently under ESM Stage-II surveillance
Regulatory Changes
The Enhanced Surveillance Measure framework continues to monitor securities based on specified criteria. Securities under ESM are subject to additional trading restrictions and monitoring to protect investor interests.
Compliance Requirements
- Trading members must comply with ESM framework requirements for listed securities
- Enhanced due diligence required for securities under ESM surveillance
- Clients must be made aware of ESM status of securities before trading
Important Dates
- August 26, 2025: ESM stage changes become effective
- August 28, 2025: Kandarp Digi Smart BPO Limited moves from EQ/SM to BE/ST segment
Impact Assessment
The ESM framework implementation may result in reduced trading volumes and liquidity for affected securities. Investors should exercise additional caution when trading in securities under enhanced surveillance. The move to BE/ST segment for Kandarp Digi Smart BPO Limited indicates heightened regulatory concern requiring special trading arrangements.
Impact Justification
Affects multiple securities with enhanced surveillance measures that may impact trading liquidity and investor sentiment