Description

BSE announces changes to securities under Long Term Additional Surveillance Measure framework, including new additions, stage movements, and removals effective October 28, 2025.

Summary

BSE has announced updates to the Long Term Additional Surveillance Measure (LT-ASM) framework effective October 28, 2025. The circular identifies securities being newly added to LT-ASM, those moving between different ASM stages, securities exiting the framework, and provides a consolidated list of all securities currently under LT-ASM surveillance.

Key Points

  • Two new securities added to LT-ASM framework: GM Breweries Ltd (507488) and Silver Oak India Ltd (531635)
  • Dhyaani Tradeventtures Ltd (543516) moved to higher Stage II under LT-ASM
  • Spice Lounge Food Works Ltd (539895) directly placed in Stage IV LT-ASM
  • Bits Ltd (526709) removed from LT-ASM due to inclusion in ESM Framework
  • No securities moving to lower ASM stages in this update
  • Framework includes consolidated list of all securities under various ASM stages

Regulatory Changes

The Long Term ASM framework applies enhanced surveillance measures to securities that meet specific criteria related to price volatility, market behavior, or other risk parameters. Securities under LT-ASM are subject to:

  • Enhanced disclosure requirements
  • Additional margin requirements for trading
  • Staged escalation based on continued concerns (Stages I through IV)
  • Potential movement to stricter frameworks (Trade for Trade, GSM, ESM, IBC)

Securities can exit LT-ASM by either improving their parameters or being moved to other surveillance frameworks.

Compliance Requirements

  • Market participants must comply with additional margin requirements for securities under LT-ASM
  • Trading members must ensure clients are aware of surveillance status of these securities
  • Enhanced due diligence required for transactions in LT-ASM securities
  • Stricter position limits may apply depending on ASM stage
  • T+0 scrips under LT-ASM due to parent company concerns require special attention

Important Dates

  • October 28, 2025: Effective date for all changes mentioned in this circular
    • New securities enter LT-ASM framework
    • Stage movements take effect
    • Bits Ltd exits LT-ASM framework

Impact Assessment

Market Impact: Medium - The addition of new securities and stage movements affect liquidity and trading conditions for the listed companies. Higher ASM stages typically result in reduced trading activity due to stricter margin requirements.

Investor Impact: Investors holding securities newly added to or moved up in LT-ASM stages will face:

  • Higher margin requirements for fresh positions
  • Reduced liquidity as some market participants may exit
  • Enhanced scrutiny and potential reputational concerns
  • Price volatility due to forced selling by leveraged positions

Operational Impact: The removal of Bits Ltd from LT-ASM (moved to ESM) indicates more severe concerns, which typically involves even stricter trading conditions.

Annexure Details

Part A - New Additions to LT-ASM:

  1. GM Breweries Ltd (507488, INE075D01018)
  2. Silver Oak India Ltd (531635, INE870J01019)

Part B - Moving to Higher Stage:

  1. Dhyaani Tradeventtures Ltd (543516, INE0K5F01014) - Moving to Stage II

Part D - Direct Stage IV Placement:

  1. Spice Lounge Food Works Ltd (539895, INE631E01024) - Direct to Stage IV

Securities Exiting LT-ASM:

  1. Bits Ltd (526709, INE839A01021) - Moving to ESM Framework

The consolidated list in Annexure III includes numerous securities across different ASM stages, providing comprehensive coverage of the surveillance framework.

Impact Justification

Affects trading conditions for multiple securities under surveillance framework. Important for investors holding these stocks due to enhanced monitoring and potential trading restrictions.