Description

BSE announces implementation of Long Term Additional Surveillance Measures including 100% margins and lower price bands on specified securities effective October 16, 2025.

Summary

BSE has issued a notice regarding the applicability of Long Term Additional Surveillance Measures (LT-ASM) on specified securities. The exchange will impose 100% margins on securities listed in Annexure I (Part A) effective October 16, 2025, applicable to both existing open positions and new positions. Securities in Annexure I (Part B) will be moved to higher stages of the LT-ASM framework with lower price bands from October 14, 2025. Additionally, certain securities in Annexure I (Part D) will be transferred to T/XT/MT/TS trade-to-trade groups while remaining under LT-ASM framework. Some securities will exit the LT-ASM framework as per Annexure II.

Key Points

  • 100% margins will be applicable on all open positions as of October 15, 2025 and new positions from October 16, 2025 for securities in Annexure I (Part A)
  • Securities in Annexure I (Part B) will move to higher stages of LT-ASM framework with lower price band effective October 14, 2025
  • Securities in Annexure I (Part D) will be transferred to trade-to-trade groups (T/XT/MT/TS) while continuing under LT-ASM framework from October 16, 2025
  • Securities exiting LT-ASM framework are listed in Annexure II effective October 14, 2025
  • Consolidated list of all securities under the framework provided in Annexure III
  • Framework is based on market surveillance and not an adverse action against companies
  • Shortlisting based on XBRL submissions by listed companies

Regulatory Changes

This notice continues the revised LT-ASM framework previously introduced through multiple circulars (March 21, 2018; October 27, 2018; December 04, 2020; August 09, 2024; and September 20, 2024). The framework imposes stricter surveillance measures on securities exhibiting unusual trading patterns or meeting specific surveillance criteria. The measures operate in conjunction with all other prevailing surveillance mechanisms imposed by the exchange.

Compliance Requirements

  • Market participants must ensure adequate margins (100%) for affected securities in Annexure I (Part A) from October 16, 2025
  • Trading in securities moved to T/XT/MT/TS groups must comply with trade-to-trade settlement requirements
  • Members should monitor the annexures to identify affected securities in their portfolios
  • For clarifications, members may contact BSE surveillance at bse.surv@bseindia.com
  • Securities will be reviewed periodically for continuation or modification of surveillance measures

Important Dates

  • October 13, 2025: Notice date
  • October 14, 2025: Lower price band applicable for securities in Annexure I (Part B); securities exit LT-ASM framework as per Annexure II
  • October 15, 2025: Last day before 100% margin requirement takes effect
  • October 16, 2025: 100% margins applicable on securities in Annexure I (Part A); securities in Annexure I (Part D) transferred to T/XT/MT/TS groups

Impact Assessment

The implementation of LT-ASM measures has significant market impact:

Trading Impact: 100% margin requirements substantially increase capital requirements for trading affected securities, likely reducing speculative activity and trading volumes. The trade-to-trade transfer eliminates intraday trading opportunities, requiring full settlement of all transactions.

Liquidity Impact: Higher margins and trading restrictions typically reduce liquidity in affected securities, potentially widening bid-ask spreads and increasing price volatility during execution.

Investor Impact: Existing position holders must arrange additional capital to meet margin requirements. Failure to meet margins may result in position liquidation by brokers.

Positive Aspect: The framework aims to protect market integrity by curbing excessive speculation and unusual price movements in vulnerable securities. Periodic review allows for removal of restrictions when conditions normalize.

The surveillance action is purely preventive and does not reflect on the fundamental quality of the affected companies, though market perception may be affected in the short term.

Impact Justification

Implementation of 100% margins and movement of securities to trade-to-trade segments significantly impacts trading and liquidity for affected securities.