Description

BSE announces changes to Long Term ASM framework effective October 09, 2025, including new securities shortlisted, stage movements, and securities moving out of the framework.

Summary

BSE has issued updates to the Long Term Additional Surveillance Measure (LT-ASM) framework effective October 09, 2025. The circular identifies securities newly shortlisted for LT-ASM, securities moving to higher or lower ASM stages, securities moving directly to Stage IV, and securities exiting the LT-ASM framework due to inclusion in other surveillance frameworks (ESM, Trade for Trade).

Key Points

  • 4 securities newly shortlisted in Long Term ASM Framework: Bharat Seats Ltd, Earthstahl & Alloys Ltd, GTT Data Solutions Ltd, and Sujala Trading & Holdings Ltd
  • 3 securities moved to higher ASM stages: Ambo Agritec Ltd (Stage III), Mcleod Russel India Ltd (Stage II), Sunrakshakk Industries India Ltd (Stage II)
  • 3 securities moved directly to Stage IV: Indo Thai Securities Ltd, KIOCL Ltd (including T+0 scrip)
  • 2 securities moving out of LT-ASM framework: Hiliks Technologies Ltd and Sahara Housingfina Corporation Ltd (both moved to ESM Framework)
  • Consolidated list includes over 8 securities in various ASM stages

Regulatory Changes

The Long Term ASM framework applies enhanced surveillance measures to securities based on various risk parameters. Securities in this framework are subject to:

  • Price bands and trading restrictions based on ASM stage
  • Higher margin requirements
  • Periodic review for stage progression or exit
  • Stage IV represents the highest level of surveillance under LT-ASM

Compliance Requirements

  • Trading members must note the changed surveillance status of affected securities
  • Enhanced due diligence required for client trades in LT-ASM securities
  • Margin requirements and price bands specific to each ASM stage must be applied
  • Systems must be updated to reflect new ASM classifications effective October 09, 2025

Important Dates

  • Effective Date: October 09, 2025 - All LT-ASM changes become applicable

Impact Assessment

Market Impact: High - Securities under LT-ASM face restricted trading conditions including price bands, additional margins, and reduced liquidity. Movement to higher stages (especially Stage IV) significantly restricts trading activity.

Investor Impact: Investors holding or trading in affected securities will experience:

  • Limited price movement (strict price bands)
  • Higher margin requirements
  • Potential reduction in liquidity
  • Increased scrutiny on transactions

Operational Impact: Brokers and trading members must update surveillance parameters, margin calculations, and risk management systems for all affected securities. Securities moving to ESM or other frameworks require additional operational adjustments.

Impact Justification

Affects trading conditions for multiple securities with surveillance measures, price bands, and restrictions that directly impact liquidity and investor access