Will The New ESM Framework Plug The Gaps?
Dalal Street Investment Journal|July 31, 2023
In a bid to address the challenges posed by high volatility in the realm of 'micro-small' companies, SEBI introduced the Enhanced Surveillance Measure (ESM) framework, which is has now revised. The new framework is set to fortify market integrity and promote a more agile and transparent trading environment for the securities falling under this framework. Bhavya Rathod highlights how it will work and also the challenges it will pose for investors
Bhavya Rathod
Will The New ESM Framework Plug The Gaps?

In the dynamic world of finance where opportunities abound and risks lurk, a momentous decision has emerged to reshape the landscape for micro-cap stocks in India. The Securities and Exchange Board of India (SEBI), in a collaborative effort with the esteemed National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), has unfurled a groundbreaking revision to the Enhanced Surveillance Measure (ESM) framework. This remarkable move signifies a giant leap forward, not just for market liquidity, but for the nurturing of growth opportunities that lie within the realm of micro-cap companies.

As investors, analysts and entrepreneurs await the transformative effects of this strategic stride, it's time to delve into the heart of this momentous decision and its potential impact on the financial horizon. In a bid to address the challenges posed by high volatility in the realm of ‘micro-small’ companies, SEBI introduced the Enhanced Surveillance Measure (ESM) framework. These companies, characterised by a market capitalisation of less than ₹500 crore, are now subject to stringent monitoring under this framework. SEBI employs two key parameters, namely high-low price variation and close-to-close price variation, to carefully shortlist securities that fall under the purview of this regulatory measure.

هذه القصة مأخوذة من طبعة July 31, 2023 من Dalal Street Investment Journal.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة July 31, 2023 من Dalal Street Investment Journal.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

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