Description

BSE announces changes to Short Term ASM framework with 7 securities entering surveillance, 12 securities exiting, and updated consolidated list effective November 17, 2025.

Summary

BSE has updated the Short Term Additional Surveillance Measure (ST-ASM) framework applicable from November 17, 2025. Seven securities are being newly shortlisted under the ST-ASM 5/15/30 Days framework (Stage I), while twelve securities are moving out of the framework due to migration to other surveillance categories or frameworks. The circular includes a consolidated list of all securities currently under ST-ASM surveillance.

Key Points

  • 7 securities newly entering ST-ASM framework (Stage I) including 2 SME scrips
  • 12 securities exiting ST-ASM framework for various reasons
  • 4 securities moving to Trade for Trade framework
  • 3 securities transitioning to LT-ASM framework
  • 2 SME scrips among exits, 1 moving to ESM framework
  • No securities moving to higher or lower stages within ST-ASM
  • Consolidated list provided showing all active ST-ASM securities with stage classifications
  • Framework includes securities marked with specific identifiers for NSE alignment, SME status, and T+0 trading

Regulatory Changes

The ST-ASM framework continues BSE’s enhanced surveillance mechanism for securities exhibiting unusual price movements or volatility. Securities under this framework face additional trading restrictions including:

  • Enhanced margin requirements
  • Price bands limitations
  • Restricted intraday trading depending on stage
  • Progressive escalation through Stage I, II, and III based on continued volatility

New Entries (Effective November 17, 2025):

  1. Ansal Buildwell Ltd (523007)
  2. HCP Plastene Bulkpack Ltd (526717)
  3. Indigo Paints Ltd (543258) - aligned with NSE
  4. JD Cables Ltd (544524) - SME scrip
  5. Premier Synthetics Ltd (509835)
  6. Technopack Polymers Ltd (543656) - SME scrip
  7. Venus Remedies Ltd (526953) - aligned with NSE

Exits by Migration Type:

  • To LT-ASM: Krupalu Metals Ltd, Rajratan Global Wire Ltd, Venus Remedies Ltd
  • To Trade for Trade: AA Plus Tradelink Ltd, Exxaro Tiles Ltd, Lake Shore Realty Ltd, Suryo Foods & Industries Ltd
  • To ESM: Gretex Corporate Services Ltd
  • Normal exit: Bharat Bhushan Finance & Commodity Brokers Ltd, Keynote Financial Services Ltd, LG Balakrishnan & Bros Ltd, Mufin Green Finance Ltd, South West Pinnacle Exploration Ltd

Compliance Requirements

For Trading Members:

  • Update risk management systems to reflect new ST-ASM classifications
  • Apply enhanced margin requirements for securities entering ST-ASM
  • Ensure proper client communication regarding trading restrictions
  • Monitor position limits and intraday trading restrictions

For Investors:

  • Be aware of enhanced surveillance measures on listed securities
  • Understand that ST-ASM securities may have restricted liquidity
  • Note higher margin requirements and settlement obligations
  • Review trading limitations before placing orders

For Listed Companies:

  • No direct compliance action required
  • Companies should ensure timely disclosures to avoid surveillance measures
  • May consider issuing clarifications if price movements trigger surveillance

Important Dates

  • November 17, 2025: Effective date for all ST-ASM changes
    • 7 securities enter ST-ASM Stage I
    • 12 securities exit ST-ASM framework
    • Updated consolidated list becomes applicable

Impact Assessment

Market Impact:

  • Limited overall market impact as measures affect only 19 securities in current update
  • Enhanced surveillance may reduce speculative trading in affected securities
  • Potential temporary liquidity reduction in newly listed ST-ASM securities
  • Exit of 12 securities provides regulatory relief and may improve liquidity

Trading Impact:

  • Securities entering ST-ASM will face higher transaction costs due to margin requirements
  • Intraday traders may avoid ST-ASM securities due to restrictions
  • Price discovery may be temporarily affected for new entrants
  • Securities exiting ST-ASM should see improved trading activity

Investor Impact:

  • Retail investors need to maintain higher margins for ST-ASM securities
  • Long-term investors less affected than short-term traders
  • Enhanced surveillance provides some protection against excessive volatility
  • Portfolio adjustments may be needed for compliance with margin requirements

Regulatory Significance:

  • Demonstrates ongoing monitoring of market volatility by BSE
  • Part of broader surveillance framework including GSM, ESM, and LT-ASM
  • Alignment with NSE on specific securities (Indigo Paints, Venus Remedies) shows inter-exchange coordination
  • SME securities receiving special attention with 2 entries and 2 exits

Impact Justification

Routine surveillance measure update affecting 19 securities with specific trading restrictions for price volatility control