Description

BSE updates the list of securities under Long Term Additional Surveillance Measure framework, with additions, exits, and stage movements effective October 20, 2025.

Summary

BSE has updated the Long Term Additional Surveillance Measure (LT-ASM) framework effective October 20, 2025. The circular identifies 3 new securities entering the framework, 16 securities exiting (mostly moved to Trade for Trade), 1 security moving to higher ASM stage, 4 securities moving to lower ASM stages, and 1 security entering directly at Stage IV. This surveillance mechanism applies additional restrictions on securities exhibiting concerning price or volume patterns.

Key Points

  • 3 securities newly shortlisted in LT-ASM Framework: Ather Energy Ltd, Gujarat Raffia Industries Ltd, and Shree Vatsaa Finance & Leasing Ltd
  • 16 securities moving out of LT-ASM Framework, with 13 transitioning to Trade for Trade framework
  • Ashram Online.Com Ltd moved to higher ASM Stage II
  • 4 securities moved to lower ASM stages: Sunrakshakk Industries (Stage I), Ambo Agritec and Marsons (Stage II), Sri Adhikari Brothers Television Network (Stage III)
  • Ironwood Education Ltd directly placed in Stage IV based on non-promoter holding criteria
  • All changes effective October 20, 2025

Regulatory Changes

The LT-ASM framework continues to operate as a graded surveillance mechanism with four stages of increasing restrictions. Securities are monitored based on price movements, volatility, and trading patterns over extended periods. This update reflects the periodic review and recategorization of securities based on their market behavior. Securities can graduate to higher stages (increased restrictions) or lower stages (reduced restrictions) based on compliance and trading characteristics.

Compliance Requirements

  • Trading members must update their systems to reflect the new ASM classifications by October 20, 2025
  • Securities in LT-ASM framework are subject to stage-specific restrictions including price bands, additional margin requirements, and trading frequency limitations
  • Investors trading in newly added or stage-upgraded securities must be aware of enhanced surveillance measures
  • Trade for Trade settlement applies to 13 securities exiting LT-ASM framework

Important Dates

  • October 20, 2025: Effective date for all LT-ASM framework changes including new additions, exits, and stage movements

Impact Assessment

Market Impact: High - The framework affects 19 securities with varying degrees of trading restrictions. New entrants (Ather Energy, Gujarat Raffia Industries, Shree Vatsaa Finance) will face surveillance constraints that may reduce liquidity and increase price discovery challenges.

Liquidity Impact: Securities moved to Trade for Trade (16 stocks) will experience significantly reduced liquidity as intraday trading is prohibited and each transaction requires full upfront margin.

Investor Impact: Stage upgrades signal heightened regulatory concern and may deter retail participation. Conversely, stage downgrades (4 securities) indicate improved market behavior and may attract increased trading interest.

Operational Impact: Brokers and trading members must ensure system readiness to handle stage-specific restrictions including margin calculations, order rejection logic, and client disclosures for affected securities.

Impact Justification

Significant surveillance framework update affecting 19 securities across multiple stages, with direct impact on trading conditions and investor participation for affected stocks