Description

BSE announces changes to securities under Short Term Additional Surveillance Measure framework effective October 24, 2025, including 11 new inclusions, stage movements, and 12 exclusions.

Summary

BSE has announced changes to the Short Term Additional Surveillance Measure (ST-ASM) framework effective October 24, 2025. The circular identifies 11 securities being newly added to the ST-ASM framework, 1 security moving to a higher stage, 1 security moving to a lower stage, and 12 securities exiting the framework. The ST-ASM framework applies enhanced surveillance measures to securities exhibiting abnormal price movements over short timeframes (5/15/30 days).

Key Points

  • 11 securities newly shortlisted under ST-ASM framework including Choksi Asia Ltd, GFL Ltd, GK Energy Ltd, Golkunda Diamonds & Jewellery Ltd, Jayant Infratech Ltd, Kore Foods Ltd, La Tim Metal & Industries Ltd, Ladderup Finance Ltd, Mystic Electronics Ltd, Tatva Chintan Pharma Chem Ltd, and Vision Cinemas Ltd
  • Silver Oak India Ltd will move to a higher stage within ST-ASM framework
  • Kairosoft AI Solutions Ltd will move to a lower stage within ST-ASM framework
  • 12 securities moving out of ST-ASM framework, with some transitioning to other surveillance frameworks (LT-ASM, ESM)
  • Consolidated list includes securities like Adeshwar Meditex Ltd, Angel Fibers Ltd, and Aptus Pharma Ltd in Stage I
  • Some securities marked with special indicators: @ for SME scrips, ~ for T+0 scrips, * for NSE alignment

Regulatory Changes

The ST-ASM framework uses graded surveillance stages based on short-term price volatility patterns. Securities under this framework face:

  • Additional surveillance deposit requirements
  • Price bands and trading restrictions
  • Enhanced disclosure obligations
  • Possible progression through multiple stages based on continued volatility

Securities may exit ST-ASM by moving to other frameworks (LT-ASM for long-term issues, ESM for enhanced surveillance, GSM for graded surveillance, Trade for Trade, or Pledge frameworks).

Compliance Requirements

  • Trading members must apply appropriate surveillance margins and restrictions for affected securities
  • Enhanced due diligence required for transactions in ST-ASM securities
  • Clients must be informed about the surveillance status of these securities
  • Additional margin requirements must be collected as per framework specifications
  • Market participants should review positions in affected securities

Important Dates

  • October 24, 2025: Effective date for all changes to ST-ASM framework
  • All new inclusions, stage movements, and exclusions become applicable from market opening on this date

Impact Assessment

Market Impact: The inclusion of 11 securities in ST-ASM framework will result in reduced liquidity and higher transaction costs for these stocks due to additional margins and trading restrictions. Investors holding these securities may face difficulty in exiting positions quickly.

Trading Impact: Securities moving to higher stages face stricter surveillance measures, while those moving to lower stages experience relaxed conditions. The 12 securities exiting ST-ASM may see improved liquidity, though some are moving to other restrictive frameworks.

Investor Impact: Retail and institutional investors need to reassess their portfolios if they hold affected securities. Higher margins may require additional capital deployment or forced position liquidation. Some securities transitioning to LT-ASM or ESM frameworks will continue to face restrictions under different criteria.

Impact Justification

Affects trading conditions for 24 securities through surveillance framework changes, impacting liquidity and trading margins for these specific stocks