Description

BSE announces securities being added to and removed from the Short Term Additional Surveillance Measure (ST-ASM) framework effective October 10, 2025.

Summary

BSE has updated the list of securities under the Short Term Additional Surveillance Measure (ST-ASM) framework effective October 10, 2025. Nine securities are being newly added to the ST-ASM framework, while two securities are moving out. The ST-ASM framework applies enhanced surveillance measures including higher margins and trading restrictions to securities exhibiting abnormal price movements or volatility.

Key Points

  • 9 securities shortlisted for inclusion in ST-ASM framework (5/15/30 Days) effective October 10, 2025
  • 2 securities moving out of ST-ASM framework (Banaras Beads Ltd and Gayatri Sugars Ltd)
  • Gayatri Sugars Ltd is moving out due to inclusion in LT-ASM (Long Term ASM) Framework
  • No securities moving to higher or lower ASM stages within the framework
  • Framework includes Stage I and Stage II classifications with varying surveillance levels
  • Consolidated list includes 15+ securities under ST-ASM surveillance

Securities Added to ST-ASM Framework

Newly Added (Stage I) - Effective October 10, 2025:

  1. AIK Pipes and Polymers Ltd (544072, INE0QFT01015) - SME scrip
  2. Amarnath Securities Ltd (538465, INE745P01010)
  3. California Software Company Ltd (532386, INE526B01014)
  4. Eimco Elecon (India) Ltd (523708, INE158B01016)
  5. Essar Shipping Ltd (533704, INE122M01019)
  6. New Light Apparels Ltd (540243, INE835U01027)
  7. Palred Technologies Ltd (532521, INE218G01033)
  8. Rita Finance and Leasing Ltd (543256, INE018S01016)
  9. Titan Intech Ltd (521005, INE807M01031)

Securities Removed from ST-ASM Framework

Moving Out - Effective October 10, 2025:

  1. Banaras Beads Ltd (526849, INE655B01011)
  2. Gayatri Sugars Ltd (532183, INE622E01023) - Moving to LT-ASM Framework

Regulatory Framework

The Short Term ASM framework is a surveillance mechanism designed to:

  • Alert investors about securities with abnormal price movements
  • Apply enhanced margin requirements
  • Implement trading restrictions based on 5/15/30 day monitoring periods
  • Progressively increase surveillance through Stage I and Stage II classifications

Compliance Requirements

  • Trading members must ensure adequate margin collection for securities under ST-ASM
  • Enhanced surveillance measures including price bands and position limits apply
  • Investors should exercise caution when trading in securities under ASM framework
  • Securities may be subject to additional delivery obligations and reduced intraday leverage

Important Dates

  • Effective Date: October 10, 2025
  • Circular Date: October 9, 2025

Impact Assessment

Market Impact:

  • Enhanced surveillance on 9 securities may reduce speculative trading activity
  • Higher margin requirements will impact liquidity for affected securities
  • Two securities gaining relief from ST-ASM restrictions (one moving to LT-ASM)

Operational Impact:

  • Brokers must update margin systems for affected securities
  • Increased monitoring requirements for trading members
  • Investors holding these securities may face higher capital requirements

Risk Mitigation:

  • Framework aims to protect investors from excessive volatility
  • Progressive surveillance stages allow for calibrated intervention
  • Clear exit criteria when securities stabilize

Impact Justification

Affects trading conditions for 9 securities being added and 2 securities being removed from ST-ASM surveillance framework, impacting liquidity and trading margins for these stocks