Description

BSE updates on securities entering, moving within, and exiting the Long Term Additional Surveillance Measure framework effective October 13, 2025.

Summary

BSE has issued updates to the Long Term Additional Surveillance Measure (LT-ASM) framework effective October 13, 2025. The circular identifies 7 securities newly entering LT-ASM, 1 security moving to higher ASM Stage II, 1 security moving to lower ASM Stage I, and 11 securities exiting the framework. The LT-ASM framework is designed to alert investors about securities with abnormal price movements or unusual trading patterns over an extended period.

Key Points

  • 7 securities newly shortlisted in Long Term ASM Framework: Classic Filaments Ltd, Cubical Financial Services Ltd, Ishan Dyes and Chemicals Ltd, Palred Technologies Ltd, Rajnish Retail Ltd, Shahlon Silk Industries Ltd, and Trio Mercantile & Trading Ltd
  • Raj Packaging Industries Ltd moved to higher ASM Stage II within LT-ASM framework
  • Vintron Informatics Ltd moved to lower ASM Stage I within LT-ASM framework
  • No securities moved directly to Stage IV LT-ASM
  • 11 securities exiting LT-ASM framework including Alpine Housing Development, Beeyu Overseas, Ceinsys Tech, and others
  • Changes effective from October 13, 2025

Regulatory Changes

The Long Term ASM framework applies heightened surveillance measures to securities exhibiting sustained abnormal trading patterns. Securities in this framework are subject to:

  • Enhanced disclosure requirements
  • Potential trading restrictions or special margins
  • Increased monitoring by the exchange
  • Staged framework with progressive measures (Stage I through Stage IV)

Securities can move between stages, exit the framework based on improved compliance, or be transferred to other surveillance frameworks (Trade for Trade, GSM, ESM, or IBC) based on specific circumstances.

Compliance Requirements

  • Trading members must be aware of securities under LT-ASM framework and applicable trading conditions
  • Investors should exercise caution when trading in LT-ASM securities due to heightened surveillance
  • Listed companies under LT-ASM should ensure timely disclosures and address concerns leading to surveillance classification
  • Members must comply with any additional margin requirements or trading restrictions applicable to LT-ASM securities

Important Dates

  • October 13, 2025: Effective date for all LT-ASM framework changes including new inclusions, stage movements, and exits

Impact Assessment

Market Impact: The inclusion of 7 new securities in LT-ASM will likely result in reduced liquidity and increased trading costs for these stocks due to potential additional margins and surveillance restrictions. The 11 securities exiting the framework should see improved trading conditions and potentially better liquidity.

Investor Impact: Investors holding or trading in newly included LT-ASM securities should be aware of increased risk perception and potential price volatility. The surveillance tag may deter certain institutional investors and impact stock valuations.

Operational Impact: Trading members need to update their systems and risk management frameworks to account for the revised LT-ASM list. Brokers must ensure proper client communication regarding the surveillance status of these securities.

Exit Reasons: Securities exited LT-ASM due to transfer to other frameworks - Visa Steel moved to ESM (Enhanced Surveillance Measure) framework, indicating continued but different surveillance requirements.

Impact Justification

Affects trading conditions for 20+ securities through surveillance framework changes, impacting liquidity and trading activity for these stocks