The Enhanced Surveillance Measure (ESM) is an initiative introduced by SEBI and stock exchanges to protect investors and promote fair market practices. It targets securities listed on the main board with a market capitalization below ₹1,000 crores, selected based on specific criteria such as price fluctuations and standard deviations.

When a security falls under ESM, measures like tighter price bands, periodic call auctions, and transfer to the Trade for Trade segment may be applied. These steps are designed to reduce speculative trading, control excessive volatility, and create a more stable trading environment.

While these measures might temporarily affect liquidity, they aim to safeguard long-term investor interests and maintain market integrity. SEBI and exchanges regularly review securities under ESM, and those showing improved stability may be removed from the framework.