Description

BSE announces securities shortlisted for Long Term ASM Framework effective October 31, 2025, including new additions, stage movements, and consolidated list of all securities under surveillance.

Summary

BSE has issued a circular regarding the applicability of Long Term Additional Surveillance Measure (LT-ASM) Framework effective October 31, 2025. Six securities have been newly shortlisted for inclusion in the LT-ASM Framework. One security (Infobeans Technologies Ltd) will be moved to a higher ASM Stage II while continuing in the framework. One security (A-1 Ltd) has been directly placed in Stage IV of the LT-ASM Framework. No securities are being moved out of the framework. The circular provides a consolidated list of all securities currently under the LT-ASM Framework.

Key Points

  • 6 new securities shortlisted for Long Term ASM Framework: Continental Controls Ltd, Lancer Container Lines Ltd, Panabyte Technologies Ltd, Pro Clb Global Ltd, Svarnim Trade Udyog Ltd, and UTL Industries Ltd
  • Infobeans Technologies Ltd continues in LT-ASM but moves to higher Stage II
  • A-1 Ltd directly placed in Stage IV of LT-ASM Framework
  • No securities moving to lower ASM stages
  • No securities moving out of LT-ASM Framework
  • Consolidated list of all securities under LT-ASM provided in Annexure III
  • Changes effective from October 31, 2025

Regulatory Changes

The Long Term ASM Framework is designed to alert investors about securities exhibiting unusual price movements or other concerns that warrant additional surveillance. Securities under this framework are subject to:

  • Enhanced surveillance measures with stricter monitoring
  • Trading restrictions including 100% upfront margin requirements
  • Stage-based progression system (Stage I through Stage IV) with increasing restrictions
  • Possible movement to Trade for Trade (T2T) segment
  • Special disclosures and investor warnings

Compliance Requirements

For Trading Members:

  • Collect 100% upfront margin from clients for all trades in LT-ASM securities
  • Ensure compliance with applicable margin requirements for respective ASM stages
  • Provide adequate risk disclosure to clients trading in these securities

For Investors:

  • Be aware of enhanced surveillance status and associated risks
  • Arrange for full upfront margins before trading in these securities
  • Exercise caution and conduct thorough due diligence before investing

Important Dates

  • Effective Date: October 31, 2025 - All changes to LT-ASM Framework become applicable

Impact Assessment

Market Impact:

  • Trading volumes in affected securities likely to decline due to 100% margin requirements
  • Reduced liquidity in the newly added and upgraded securities
  • Investors may exit positions before effective date to avoid margin requirements
  • Price volatility may increase during transition period

Operational Impact:

  • Brokers need to update systems to enforce margin requirements for affected securities
  • Risk management systems must be reconfigured for new LT-ASM securities
  • Client communication and disclosure requirements increase
  • Monitoring and compliance workload increases for surveillance team

Investor Impact:

  • Significantly higher capital requirements for trading in affected securities
  • Limited ability to take leveraged positions
  • Increased trading costs and reduced flexibility
  • Warning signal about potential risks in these securities requiring careful evaluation before investment decisions

Impact Justification

Long Term ASM Framework imposes stringent trading restrictions on securities, requiring 100% upfront margin and additional surveillance measures. Multiple securities are being added or moved to higher stages, significantly impacting trading activity and investor participation in these stocks.