Enhanced Surveillance Measure (ESM): What you need to know about the revised rule before investing in the share market?

Are you investing in ESM stocks? Here's what you need to know about the revised rule. Read this complete article to get the complete information!

 Enhanced Surveillance Measure

Step into the world of enhanced surveillance measure (ESM) in the share market, where stock exchanges are taking stock surveillance to new heights. With the revised ESM framework, investors are set to benefit from increased trading opportunities, breaking free from the shackles of limited engagement. In an era characterised by ever-changing market dynamics, statutory compliance is utmost important to fostering a vibrant and investor-friendly financial ecosystem. But what exactly is ESM, and should you consider investing in shares under this measure? This article delves deep into the world of ESM and explores its implications for micro-small companies and investors alike.


  • ESM: Stock surveillance at new heights

  • Revised ESM framework: Boost to micro-small companies

  • Revised ESM framework: More trading opportunities

  • Regulatory adaptability: Key to financial ecosystem

Also Read: 5 reforms that India has seen post Independence

The revised ESM framework is a positive development for investors and micro-small companies. The new framework allows for continuous trading, which gives investors more flexibility to optimise their portfolios and seize emerging opportunities. Micro-small enterprises are also presented with a gateway to flourish on the back of heightened market visibility and investor engagement.

However, the revised framework also requires investors to be more vigilant and prudent in their investment decisions. They must conduct comprehensive research, manage risk effectively, and diversify their portfolio. They must also be prepared to face challenges and uncertainties in the volatile micro-small sector.

How ESM framework revision affects micro-small businesses?

The stock exchanges have revised the stock surveillance actions under the Enhanced Surveillance Measure (ESM) framework. Now stocks under ESM Stage-II can trade on all trading days instead of once a week. This is a welcome development for investors who have been seeking more opportunities to trade in these stocks.

The revised ESM framework includes a controlled +/- 2% price band and a requirement of a 100% margin. These measures strike a balance between facilitating trading activity and minimising excessive volatility. Overall, the revised ESM framework is a positive development for investors and the market as a whole.

Boosting Micro-Small Businesses

The Enhanced Surveillance Measure (ESM) framework is designed to monitor and regulate the trading of stocks that are considered being at high risk of manipulation. The ESM framework has been revised recently to focus on micro-small companies with a market cap of less than Rs 500 crore.

Also Read: SEBI Gives Sustainability Boost With These New Measures on ESG-based Mutual Funds

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax advice.

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