Description

BSE announces changes to Long Term ASM Framework effective November 17, 2025, including new additions, stage movements, and securities moving out of the framework.

Summary

BSE has issued updates to the Long Term Additional Surveillance Measure (LT-ASM) Framework effective November 17, 2025. The circular identifies 2 new securities entering the framework, 1 security moving to a higher ASM stage, 5 securities moving to lower ASM stages, and 24 securities exiting the framework. Most securities exiting the LT-ASM are being moved to the Trade for Trade framework instead.

Key Points

  • 2 securities newly shortlisted for LT-ASM: Krupalu Metals Ltd and Rajratan Global Wire Ltd
  • Epuja Spiritech Ltd moving from current stage to Stage II ASM
  • 5 securities moving to lower ASM stages: Infobeans Technologies Ltd, Sri Adhikari Brothers Television Network Ltd, and TCM Ltd moving to Stage I; Arihant Foundations & Housing Ltd moving to Stage II; Ironwood Education Ltd moving to Stage III
  • 24 securities moving out of LT-ASM Framework, with majority transitioning to Trade for Trade framework
  • No securities being placed in Direct Stage IV under the LT-ASM Framework
  • Changes effective from November 17, 2025

Regulatory Changes

The LT-ASM Framework continues BSE’s surveillance mechanism to monitor securities with concerning trading patterns or corporate governance issues. Securities in this framework face additional restrictions and monitoring:

  • New Inclusions (Part A): Krupalu Metals Ltd (544509) and Rajratan Global Wire Ltd (517522) added to LT-ASM
  • Stage Escalation (Part B): Epuja Spiritech Ltd (532092) moved to higher Stage II
  • Stage Reduction (Part C): Three securities downgraded to Stage I, one to Stage II, and one to Stage III
  • Exits (Annexure II): 24 securities removed from LT-ASM, most moved to Trade for Trade framework

Compliance Requirements

  • Trading Members: Must ensure compliance with LT-ASM framework requirements for affected securities including any applicable price bands, trading restrictions, and additional margin requirements
  • Investors: Should be aware that securities in LT-ASM stages face enhanced surveillance and may have restricted trading conditions
  • Listed Companies: Securities under LT-ASM face heightened scrutiny and must maintain enhanced disclosure standards
  • Securities moved to Trade for Trade framework will have no intraday trading allowed

Important Dates

  • Effective Date: November 17, 2025 - All changes to LT-ASM classifications become effective

Impact Assessment

Market Impact: Medium - The changes affect 32 securities across various stages. The addition of 2 new securities to LT-ASM may reduce liquidity and increase trading costs for those stocks. The movement of 24 securities out of LT-ASM (primarily to Trade for Trade) represents a shift in surveillance approach that will eliminate intraday trading for those securities.

Investor Impact: Investors holding or trading the 2 newly added securities will face additional surveillance measures and potential trading restrictions. Those holding securities moving to Trade for Trade will lose intraday trading flexibility but may benefit from reduced volatility concerns.

Liquidity Impact: Securities entering LT-ASM typically experience reduced liquidity due to additional restrictions. The 5 securities moving to lower ASM stages may see improved liquidity, while Epuja Spiritech Ltd moving to Stage II will face tighter restrictions.

Impact Justification

Affects trading conditions for multiple securities through surveillance measure changes, impacting liquidity and trading costs for affected stocks