What are ESM stocks?

SEBI, in order to enhance market integrity and safeguard interest of investors, have been introducing various enhanced surveillance measures such as GSM, ASM, reduction in price band, periodic call auction and transfer of securities to Trade for Trade segment from time to time.  The basis purpose of this is to alert and advise investors to be extra cautious and take informed decisions while dealing with such stocks. 


In addition to various surveillance measures introduced, SEBI and Exchanges have introduced ESM (Enhanced Surveillance Measure) on Micro Small Companies (on main board with market capitalization less than 500 crores) based on objective parameters vide Price Variation, SD (standard deviation) etc.,


There are 2 stages in ESM which are Stage I and Stage II


Stage 1 

a) The stock will be under Trade to Trade settlement 

b) With a price band of 5% or

c) Price of 2% (if the stock is already under 2% band)


Stage II 

a) The stock will be under Trade to Trade settlement 

b) With a price band of 2% and 

c) Trading will be allowed once in a week with Periodic Call Auction

As per the internal Risk Management Policies of Navia, stocks under ESM are not allowed to be traded. For more details on this read here

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