Stock Exchanges removed 39 stocks out of Enhanced Surveillance Measure framework

The stock exchanges have removed 39 small cap stocks from the Enhanced Surveillance Measure [ESM] framework with effective from January 29, 2024.

Stock Exchanges removed 39 stocks out of Enhanced Surveillance Measure framework

New Delhi: According to the circular issued by the stock exchange market the small-cap securities stock such as Rajoo Engineers, Brand Concepts, Modern Insulators, BPL, Mirc Electronics, Shreyans Industries and Aban offshore, among others, are included in the list of stocks that will no longer be part of ESM framework.

The ESM framework was introduced in 2023 for highly volatile micro-small companies. These are the companies with a market cap of less than Rs 500 crore. As per SEBI, high-low price variation and close-to-close price variation are the parameters used to shortlist securities under this framework.

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The Enhanced Surveillance Measure is a regulatory framework implemented by the NSE.

Stocks under Stage I and Stage II of ESM are settled through a trade-for-trade mechanism with a 100% margin. In July, the stock exchange revised the rules and allowed stocks under ESM Stage-II to trade on all days in place of once a week. The derivative products of public sector entities will be also excluded from the surveillance guidelines.

 

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Three stocks Bombay Wire Ropes, Digidrive Distributors and Parshwanath Corporation have been included while, Rudra Global Infra Product, GP Petroleum, Kanoria Energy, Signet Industries, Bemco Hydraulics, Samrat Forgings and Amba Enterprises are excluded from the ESM framework.

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