Description

BSE circular on securities shortlisted, moved, or exiting from Long Term ASM Framework effective October 16, 2025, including stage movements and consolidated list.

Summary

BSE has issued updates to the Long Term Additional Surveillance Measure (LT-ASM) Framework effective October 16, 2025. The circular identifies 7 securities newly shortlisted for LT-ASM, 1 security moving to higher ASM stage, 1 security exiting the framework, and provides a consolidated list of all securities under various ASM stages. Securities under LT-ASM face enhanced surveillance with stricter trading conditions including higher margins and delivery-based trading requirements.

Key Points

  • 7 securities newly shortlisted in Long Term ASM Framework: Cambridge Technology Enterprises, Ironwood Education, Machhar Industries, Sanathnagar Enterprises, Tata Investment Corporation, Xelpmoc Design and Tech
  • Lexoraa Industries moved from LT-ASM to higher Stage II ASM
  • Raj Packaging Industries moved out of LT-ASM Framework due to inclusion in ESM Framework
  • No securities moved to lower ASM stages or directly to Stage IV
  • Changes effective from October 16, 2025
  • Consolidated list includes securities across multiple ASM stages starting with Stage I securities like 7Seas Entertainment, A B Infrabuild, A-1 Ltd, Aadi Industries

Regulatory Changes

The circular implements periodic review updates to the Long Term ASM Framework as per BSE’s surveillance mechanism. Securities are classified into different parts:

  • Part A: New entries to LT-ASM Framework
  • Part B: Securities continuing in LT-ASM but moving to higher stages
  • Part C: Securities continuing in LT-ASM but moving to lower stages (NIL this period)
  • Part D: Securities moving directly to Stage IV LT-ASM (NIL this period)
  • Annexure II: Securities exiting LT-ASM Framework
  • Annexure III: Consolidated master list of all ASM securities

Special notations indicate T+0 scrips shortlisted based on parent company criteria, and securities classified as per NSE or non-promoter holding.

Compliance Requirements

  • Trading members must apply appropriate margin and surveillance requirements for affected securities
  • Securities in LT-ASM Framework subject to 100% delivery-based trading
  • Enhanced surveillance margins applicable as per respective ASM stages
  • No intraday trading permitted for these securities
  • Members must update their systems to reflect new ASM classifications
  • Investors should be aware of restricted trading conditions before taking positions

Important Dates

  • Effective Date: October 16, 2025 - All changes to LT-ASM Framework become applicable
  • Circular Date: October 15, 2025

Impact Assessment

Market Impact: High - The inclusion of 7 new securities in LT-ASM Framework will significantly impact their liquidity as trading becomes delivery-based only with no intraday positions allowed. This typically results in reduced trading volumes and wider bid-ask spreads.

Trading Impact: Securities under LT-ASM face 100% margin requirements and delivery obligations, making them less attractive for short-term traders. Movement of Lexoraa Industries to Stage II indicates escalating surveillance concerns.

Investor Impact: Existing holders of these securities may face difficulty in exiting positions due to reduced liquidity. New investors must commit full capital upfront with mandatory delivery settlement.

Positive Aspects: The surveillance framework aims to curb excessive speculation and price manipulation, potentially protecting retail investors from volatile price movements in these securities. Exit of Raj Packaging from LT-ASM to ESM indicates enhanced monitoring measures.

Impact Justification

Affects trading conditions for multiple securities with surveillance measures effective immediately, impacting liquidity and trading costs