Description

BSE circular announcing changes to Long Term ASM Framework effective October 17, 2025, including securities being added, moved between stages, and removed from the framework.

Summary

BSE has announced changes to the Long Term Additional Surveillance Measure (LT-ASM) Framework effective October 17, 2025. The circular lists securities being newly shortlisted, securities moving between different ASM stages, securities moving to direct stage IV, and securities exiting the framework. The changes include 5 new securities entering LT-ASM, 1 security moving to higher stage, 2 securities moving to direct stage IV, and 2 securities moving out of the framework.

Key Points

  • 5 securities newly shortlisted in Long Term ASM Framework: Atal Realtech Ltd, Ganon Products Ltd, Indrayani Biotech Ltd, Jet Solar Ltd, and S. V. J. ENTERPRISES Ltd
  • Earthstahl & Alloys Ltd moving from current stage to Stage II ASM
  • 2 securities (LKP Finance Ltd and Stallion India Fluorochemicals Ltd) shortlisted in Direct Stage IV Long Term ASM Framework
  • 2 securities moving out: Deep Diamond India Ltd (moved to ESM Framework) and Sanathnagar Enterprises Ltd (moved to GSM Framework)
  • Consolidated list contains 540+ securities across different ASM stages
  • Changes effective from October 17, 2025

Regulatory Changes

The Long Term ASM Framework continues BSE’s surveillance mechanism to identify securities with abnormal price movements or trading patterns. Securities under this framework face enhanced surveillance with stage-wise restrictions:

  • Stage I through Stage IV ASM with progressively stricter surveillance measures
  • Securities can move between stages based on ongoing monitoring
  • Direct Stage IV placement for specific securities as per notice no.20210604-41
  • Integration with other frameworks (ESM, GSM, Trade for Trade, IBC) for comprehensive market surveillance

Compliance Requirements

  • Trading members must note the ASM stage applicable to each security
  • Enhanced margin requirements and price bands apply based on ASM stage
  • Members should update their risk management systems for affected securities
  • Investors trading in LT-ASM securities must be aware of applicable restrictions
  • Position limits and trading conditions specific to each ASM stage must be adhered to

Important Dates

  • Effective Date: October 17, 2025 - All changes to LT-ASM Framework become applicable
  • Circular Date: October 16, 2025

Impact Assessment

Market Impact: Medium - The changes affect specific securities under surveillance but do not impact broader market operations. Securities entering or moving within LT-ASM may experience reduced liquidity and increased margin requirements.

Trading Impact: Securities newly entering LT-ASM or moving to higher stages will face stricter surveillance measures including higher margins, possible tick size changes, and enhanced disclosure requirements. The 2 securities exiting LT-ASM to ESM/GSM frameworks will face different surveillance parameters.

Investor Impact: Investors holding or trading the affected securities should be aware of changed trading conditions, including potential impact on liquidity, margin requirements, and settlement obligations specific to their ASM stage classification.

Impact Justification

Affects multiple securities under surveillance framework with stage changes and entries/exits from LT-ASM, impacting trading parameters for specific stocks