Description

NSE updates Enhanced Surveillance Measure framework with new securities in Stage I, stage transitions, and consolidated ESM list effective September 9, 2025.

Summary

NSE has updated the Enhanced Surveillance Measure (ESM) framework effective September 9, 2025. Two new securities have been added to ESM Stage I, one security has been moved from Stage I to Stage II, and no securities have been excluded from the framework. The circular also provides a consolidated list of all 35+ securities currently under ESM surveillance.

Key Points

  • Two new securities added to ESM Stage I: Barak Valley Cements Limited (BVCL) and Readymix Construction Machinery Limited (READYMIX)
  • Both new Stage I securities will move from EQ/SM to BE/ST segment effective September 10, 2025
  • Andhra Cements Limited (ACL) upgraded from ESM Stage I to Stage II
  • No securities moved from Stage II to Stage I
  • No securities excluded from ESM framework
  • Consolidated ESM list includes 26 securities in Stage II and multiple securities in Stage I

Regulatory Changes

  • Enhanced surveillance measures applied to two additional securities
  • Segment change from EQ/SM to BE/ST for BVCL and READYMIX effective September 10, 2025
  • Stage progression for ACL from Stage I to Stage II indicating continued surveillance concerns

Compliance Requirements

  • Market participants must be aware of enhanced surveillance measures for listed securities
  • Trading in ESM securities subject to additional monitoring and potential restrictions
  • Brokers and investors should exercise enhanced due diligence when dealing with ESM securities

Important Dates

  • September 9, 2025: ESM changes become effective
  • September 10, 2025: BVCL and READYMIX move from EQ/SM to BE/ST segment

Impact Assessment

The addition of new securities to ESM and stage progressions indicate NSE’s continued focus on market surveillance and investor protection. Securities under ESM face enhanced monitoring, potential trading restrictions, and reduced liquidity. The segment change to BE/ST for new Stage I securities may further impact trading volumes and investor participation in these stocks.

Impact Justification

Affects multiple securities with enhanced surveillance measures and trading restrictions