The Securities and Exchange Board of India (SEBI) has introduced Enhanced Surveillance Measures (ESM) to monitor and regulate trading activities in micro and small-cap companies with a market capitalization of less than ₹500 crores. ESM aims to prevent market manipulation and ensure fair and transparent trading practices. ESM consists of two stages: - Stage I: Securities are placed under this category for a minimum of 3 months with trading allowed once a week through a Periodic Call Auction with a price band of 5%. - Stage II: Securities are placed under this category for a minimum of 1 month with trading permitted once a week through a Periodic Call Auction with a price band of 2%. Securities are shortlisted for ESM based on high-low price variation and close-to-close price variation over 3, 6, and 12 months. Public sector organizations and banks are exempt from ESM. The minimum duration for securities in the ESM framework is 90 calendar days for Stage I and 30 calendar days .cont
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