What is ESM in the stock market?

ESM (Enhanced Surveillance Measure) is a surveillance framework that NSE and BSE apply to listed companies with a market capitalisation under ₹1,000 crore whose share price has varied far more than usual. A stock on ESM trades under extra limits, such as trade-for-trade settlement, a tight price band and 100% margin, until a weekly review takes it out.

What is the difference between ESM Stage 1 and Stage 2?

Stage 1 is the first, lighter set of limits: trade-for-trade settlement with a tight price band. A Stage 1 stock moves to Stage 2 if it rises 15% or more in 5 consecutive trading days or 30% or more in a month and its P/E is negative or above twice the BSE 500 P/E. Stage 2 is stricter: the stock trades only in periodic call auctions with a tighter price band.

How long does a stock stay in ESM?

At least 90 calendar days in the framework. A Stage 2 stock stays in Stage 2 for at least one month and must first move back to Stage 1; the exit itself comes from a later weekly Stage 1 review. The exchanges decide every move.

How often is the ESM list reviewed?

Every week. The exchanges announce changes after market hours, typically one trading day before they take effect.

Is being put under ESM an adverse action against the company?

No. ESM shortlisting is a surveillance measure based on price movement and market capitalisation, not an adverse action against the company and not a judgement about its business.

Where can I see the current ESM stocks list?

The exchanges publish it: NSE in its daily regulatory-indicator (REG_IND) file and BSE in its daily ESM notices and REG_IND file. SurveillanceLab's ESM stocks list page shows both as one names-only list (symbol, company, exchange and stage), rewritten every weekday night; prices, price bands, fundamentals and estimated exit dates are shown after you sign in.

What is ESM (Enhanced Surveillance Measure)?

Last reviewed 13 October 2026 · by Rachid Asen

The Enhanced Surveillance Measure (ESM) is a surveillance framework that NSE and BSE apply to small listed companies whose share price has moved far more than is usual for companies of their size. A stock on ESM keeps trading, but under extra limits, until the exchanges' weekly review takes it out.

Which stocks can be put under ESM?

According to NSE's FAQ on ESM v1.1 (25 July 2025, circular NSE/SURV/69315):

Market cap under ₹1,000 crore. Only companies below ₹1,000 crore can be shortlisted. The limit is used for inclusion only.
Main board and SME. Both are covered, and newly listed securities under ₹1,000 crore are eligible.
No F&O stocks. Securities with derivatives are excluded.
Unusual price variation. High-low or close-to-close variation over 3, 6 or 12 months must clear a fixed floor and a hurdle of one standard deviation across all companies under ₹1,000 crore. The exact tests are on the ESM Stage 1 page.

Stage 1 and Stage 2

Stage	How a stock gets there	Trading conditions
Stage 1	Shortlisted on the price-variation tests	Trade-for-trade settlement (every trade is settled by delivery) with a tight price band
Stage 2	A Stage 1 stock that rises 15% in 5 trading days or 30% in a month and fails a P/E test	Stricter: trades only in periodic call auctions, with a tighter price band

Margins are 100% from the date a stock enters ESM. Details: Stage 1, Stage 2.

How long does a stock stay on ESM?

The exchanges review ESM stocks every week. A stock spends at least 90 calendar days in the framework. A Stage 2 stock stays there for at least a month and has to step down to Stage 1 before it can leave; the exit comes from a later Stage 1 review. See ESM exit rules.

Who decides, and how is it announced?

The exchanges decide every inclusion, stage change and exit, and coordinate them across NSE and BSE. Changes are announced after market hours, typically one trading day before they take effect.

NSE ESM: NSE's daily regulatory-indicator file (REG_IND) marks each stock's ESM stage. New names appear in it two trading sessions before they take effect.
BSE ESM: BSE publishes a daily ESM notice. Its Annexure I lists entries and stage moves and Annexure II lists exits. Exits take effect the next trading day after the notice and entries the second trading day.

A company listed on both exchanges can be on ESM on both, with its own stage and dates on each.

What ESM is not

ESM shortlisting is a surveillance measure based on price movement and market capitalisation. It is not an adverse action against the company, not a judgement about its business, and not a signal to buy or sell.

ESM on this site

ESM stocks list: every NSE and BSE stock under ESM, by symbol, company, exchange and stage, updated on weekday nights.
ESM stocks this week: the listings that entered ESM this week and those that left it, names only.
The other surveillance framework, ASM, is explained in What is ASM? and compared in ASM vs ESM vs GSM.

Frequently asked questions

What is ESM in the stock market?: ESM (Enhanced Surveillance Measure) is a surveillance framework that NSE and BSE apply to listed companies with a market capitalisation under ₹1,000 crore whose share price has varied far more than usual. A stock on ESM trades under extra limits, such as trade-for-trade settlement, a tight price band and 100% margin, until a weekly review takes it out.
Which stocks can be put under ESM?: Main-board and SME companies with a market capitalisation below ₹1,000 crore, including newly listed ones. Stocks with derivatives (F&O) are excluded. A stock is shortlisted when its high-low or close-to-close price variation over 3, 6 or 12 months clears both a fixed floor and a hurdle of one standard deviation across all companies under ₹1,000 crore.
What is the difference between ESM Stage 1 and Stage 2?: Stage 1 is the first, lighter set of limits: trade-for-trade settlement with a tight price band. A Stage 1 stock moves to Stage 2 if it rises 15% or more in 5 consecutive trading days or 30% or more in a month and its P/E is negative or above twice the BSE 500 P/E. Stage 2 is stricter: the stock trades only in periodic call auctions with a tighter price band.
How long does a stock stay in ESM?: At least 90 calendar days in the framework. A Stage 2 stock stays in Stage 2 for at least one month and must first move back to Stage 1; the exit itself comes from a later weekly Stage 1 review. The exchanges decide every move.
How often is the ESM list reviewed?: Every week. The exchanges announce changes after market hours, typically one trading day before they take effect.
Is being put under ESM an adverse action against the company?: No. ESM shortlisting is a surveillance measure based on price movement and market capitalisation, not an adverse action against the company and not a judgement about its business.
Where can I see the current ESM stocks list?: The exchanges publish it: NSE in its daily regulatory-indicator (REG_IND) file and BSE in its daily ESM notices and REG_IND file. SurveillanceLab's ESM stocks list page shows both as one names-only list (symbol, company, exchange and stage), rewritten every weekday night; prices, price bands, fundamentals and estimated exit dates are shown after you sign in.

Sources

NSE: FAQs – Enhanced Surveillance Measure (ESM), version 1.1, 25 July 2025 (circular NSE/SURV/69315): eligibility, Stage 1 and Stage 2 criteria, review and exit.
NSE's daily regulatory-indicator file (REG_IND), whose ESM column is 1 (Stage 1), 2 (Stage 2) or 100 (not in ESM).
BSE's daily “Enhanced Surveillance Measure (ESM)” notices (Annexure I: entries and stage moves; Annexure II: exits) and the REG_IND file in BSE's scrip archive.

Exchange circulars change. Where this page and the current circular differ, the circular applies.

More ESM and ASM guides

ESM Stage 1The price-variation tests that put a stock in Stage 1 and the trading limits that follow.
ESM Stage 2When a Stage 1 stock moves to the stricter Stage 2, and when it can move back.
ESM exit rulesThe weekly review, the 90-day minimum and why a Stage 2 stock exits in two steps.
What is ASM?What ASM is, its long-term and short-term frameworks, the typical measures and who decides.
Long-term ASM (LT-ASM)The four long-term stages, what each one changes, and the 90-day stage-wise exit.
Short-term ASM (ST-ASM)The two short-term stages, their margins and the 5 or 15 trading-day review.
ASM vs ESM vs GSMWhat triggers each measure, its stages and typical limits, side by side.

Not investment advice. This page explains the exchanges' published rules for education only. It does not recommend buying, selling or holding any security. Inclusion, stage changes and exit are decided solely by NSE and BSE.