Description

BSE announces changes to Long Term ASM Framework effective October 30, 2025, including new securities shortlisted, securities moving to higher/lower stages, and securities moving out of the framework.

Summary

BSE has issued updates to the Long Term Additional Surveillance Measure (LT-ASM) Framework effective October 30, 2025. The circular identifies securities being newly shortlisted in the framework, securities continuing in the framework but moving to higher or lower ASM stages, securities moving directly to Stage IV, and securities exiting the framework due to inclusion in other surveillance frameworks (Trade for Trade, GSM, ESM, or IBC).

Key Points

  • 2 new securities shortlisted in Long Term ASM Framework: Jetking Infotrain Ltd and Novelix Pharmaceuticals Ltd
  • 2 securities moving to higher ASM Stage II: A-1 Ltd and CarTrade Tech Ltd
  • No securities moving to lower ASM stages
  • No securities moving directly to Stage IV
  • 4 securities moving out of LT-ASM Framework: Classic Filaments Ltd, Ganon Products Ltd, Mahip Industries Ltd, and Shree Vatsaa Finance & Leasing Ltd
  • Consolidated list provided showing all securities currently in LT-ASM with their respective stages
  • Changes effective from October 30, 2025

Regulatory Changes

The Long Term ASM Framework applies enhanced surveillance measures to securities that meet specific criteria related to price movements, volatility, or other market anomalies. Securities in this framework are subject to:

  • Trading restrictions based on ASM stage (Stage I, II, III, or IV)
  • Higher margin requirements
  • Price bands and other trading controls
  • Enhanced monitoring and surveillance

Securities can move between stages or exit the framework based on their trading behavior and compliance with other regulatory requirements.

Compliance Requirements

  • Trading members must ensure compliance with applicable margin requirements for securities in LT-ASM
  • All trades in LT-ASM securities must adhere to the stage-specific restrictions
  • Members should update their systems to reflect the new classifications effective October 30, 2025
  • Investors should be aware of the enhanced surveillance status when trading these securities

Important Dates

  • October 30, 2025: Effective date for all changes to LT-ASM Framework classifications

Impact Assessment

Market Impact: Medium - The changes affect approximately 18+ securities across multiple stages of surveillance. While this represents a small fraction of total listed securities, the affected stocks will experience:

  • Reduced liquidity due to trading restrictions
  • Higher transaction costs due to increased margin requirements
  • Potential price impact as some securities move to higher surveillance stages

Operational Impact: Trading members need to update their risk management systems and ensure proper margin collection for affected securities. The exit of 4 securities from LT-ASM (moving to other frameworks like ESM, GSM) may provide some relief, though these securities remain under surveillance through different mechanisms.

Investor Impact: Investors holding or trading these securities should be aware of the enhanced surveillance status, which signals higher risk profiles and potential corporate governance or market integrity concerns.

Impact Justification

Affects trading conditions for 18+ securities through inclusion, exclusion, or stage changes in LT-ASM framework, impacting liquidity and trading parameters for affected stocks