Description

BSE circular announcing securities being added to, moved within, or removed from the Short Term Additional Surveillance Measure framework effective November 06, 2025.

Summary

BSE has issued a circular detailing changes to the Short Term Additional Surveillance Measure (ST-ASM) framework effective November 06, 2025. The circular identifies 8 securities being newly included in the ST-ASM framework, 1 security moving to a higher stage within the framework, and 9 securities exiting the framework. The ST-ASM is a surveillance measure applied to securities exhibiting abnormal price movements or volatility over short periods (5/15/30 days).

Key Points

  • 8 securities newly shortlisted for ST-ASM framework including Aravali Securities & Finance Ltd, Comfort Commotrade Ltd, Contil India Ltd, Dredging Corporation of India Ltd, Fineotex Chemical Ltd, TD Power Systems Ltd, Thangamayil Jewellery Ltd, and Unison Metals Ltd
  • Om Metallogic Ltd will continue in ST-ASM but move to a higher stage
  • 9 securities moving out of ST-ASM framework: Advance Agrolife Ltd, Flex Foods Ltd, IFB Agro Industries Ltd, Jain Resource Recycling Ltd, Kati Patang Lifestyle Ltd, Megastar Foods Ltd, Sacheta Metals Ltd, Shankara Building Products Ltd, and Sonalis Consumer Products Ltd
  • 6 of the 9 exiting securities are moving to Long Term ASM (LT-ASM) framework instead
  • Circular includes consolidated list of all securities currently under ST-ASM framework
  • Framework includes SME scrips and T+0 scrips with specific notations

Regulatory Changes

The ST-ASM framework continues BSE’s surveillance mechanism to identify and monitor securities with unusual price and volume behavior. Securities under this framework face additional trading restrictions including higher margin requirements and potential limitations on intraday trading. The framework operates in stages (Stage I, II, III, etc.) with progressively stricter surveillance measures.

Compliance Requirements

  • Brokers and market participants must ensure compliance with enhanced margin requirements for securities under ST-ASM
  • Trading members should inform clients about securities entering or moving within the surveillance framework
  • Securities marked with asterisks (*) are subject to NSE alignment requirements
  • Securities marked with @ (SME scrips) and ~ (T+0 scrips) have special monitoring protocols

Important Dates

  • Effective Date: November 06, 2025 - All changes to ST-ASM framework take effect
  • Circular Date: November 04, 2025

Impact Assessment

Market Impact: Medium - The inclusion of securities in ST-ASM typically results in reduced liquidity and increased trading costs due to higher margin requirements. Investors holding these securities may face increased capital requirements for maintaining positions.

Operational Impact: Trading members need to update their risk management systems to reflect the new surveillance status. The movement of 6 securities from ST-ASM to LT-ASM indicates sustained concerns requiring longer-term monitoring.

Investor Impact: Investors in the 8 newly listed securities will face stricter trading conditions. However, the exit of 9 securities provides relief, though 6 are moving to the more stringent LT-ASM framework, indicating continued regulatory concerns about their trading behavior.

Impact Justification

Affects trading conditions for 26 securities across multiple stages of surveillance framework, impacting liquidity and trading costs for these stocks