Description

BSE circular detailing securities shortlisted for Long Term Additional Surveillance Measure (LT-ASM) framework and changes in ASM stages effective December 03, 2025.

Summary

BSE has issued a circular regarding the applicability of Long Term Additional Surveillance Measure (LT-ASM) framework effective December 03, 2025. The circular identifies 7 securities newly shortlisted for LT-ASM, 2 securities moved directly to Stage IV, and 3 securities exiting the framework. The LT-ASM framework imposes enhanced surveillance measures including higher margins and mandatory delivery requirements on securities exhibiting certain risk characteristics.

Key Points

  • 7 securities newly shortlisted in Long Term ASM Framework: Aryaman Capital Markets Ltd, Auro Laboratories Ltd, Avance Technologies Ltd, Diggi Multitrade Ltd, Grand Oak Canyons Distillery Ltd, Refex Renewables & Infrastructure Ltd, and Sobhagya Mercantile Ltd
  • 2 securities moved directly to Stage IV LT-ASM: GHV Infra Projects Ltd and NACL Industries Ltd
  • 3 securities moving out of LT-ASM framework: Bandaram Pharma Packtech Ltd (moved to ESM), Caprolactam Chemicals Ltd (moved to GSM), and M P K Steels (I) Ltd (moved to ESM)
  • No securities moved to higher or lower ASM stages within the LT-ASM framework
  • Consolidated list of securities under various ASM stages provided in Annexure III

Regulatory Changes

The Long Term ASM framework applies enhanced surveillance measures to securities based on specific risk parameters over a longer observation period. Securities under this framework are subject to:

  • Higher margin requirements
  • Mandatory delivery-based settlement (100% delivery)
  • Periodic review for movement between ASM stages or exit from framework
  • Potential progression to Trade-for-Trade segment

Compliance Requirements

  • Trading members must ensure compliance with margin and settlement requirements for securities under LT-ASM
  • Only delivery-based trades permitted for affected securities
  • Clients trading in LT-ASM securities must provide adequate margins as specified
  • Market participants should monitor securities list for regular updates

Important Dates

  • Effective Date: December 03, 2025 - All changes to LT-ASM framework become applicable

Impact Assessment

The LT-ASM framework impacts trading liquidity and costs for the identified securities. Securities newly entering the framework will experience:

  • Reduced speculative trading due to 100% delivery requirement
  • Higher capital requirements due to enhanced margins
  • Potential decline in trading volumes
  • Increased trading costs for market participants

For securities exiting LT-ASM and moving to ESM or GSM frameworks, the surveillance continues under different parameters. The movement of GHV Infra Projects and NACL Industries directly to Stage IV indicates heightened concerns requiring the most stringent surveillance measures.

Impact Justification

Affects trading conditions for multiple securities under surveillance framework with specific margin and delivery requirements