ENHANCED SURVEILLANCE MEASURE (ESM): Are you stuck in ESM STAGE II stocks?

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This is my first post on ValuePickr. Instead of a normal post like talking about my portfolio, I thought it would be useful to discuss ESM.

I have invested in some stocks that have been selected for ESM stage II. :stuck_out_tongue_winking_eye:

For people who don’t know about ESM Stage II, you can read more about it at ESM.

The problem is once a stock enters ESM Stage II or Stage III I feel the amount of manipulation increases as trades are collected and in the case of Stage II, only 6 times prices are matched in a day.

This is quite unfair to people who bought before the framework was even introduced.

Do you see any merit in ESM Stage II and Stage III periodic auction trading?

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I can’t speak about merit, but I have been able to buy some good stocks because they came in ESM. Like Indotech transformers, Sky gold, Ael

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So bad for existing investors and good for new entries?
Even my stock JWL is stuck in ASM and it is doing a lot of harm. Titagarh on the other hand has rallied 30pc since the time I bought Jupiter.

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@Ascendant @praky Good points.

If the growth in the stock is believed to be long-term, then it provides a good entry point as sooner or later it will exit ESM then it will perhaps catch up.

However, if the reason for growth is a temporary trigger, then investors who have invested because of the trigger may miss the boat.