Description
BSE announces securities shortlisted for Long Term ASM Framework, securities moving to higher/lower stages, and securities moving out of LT-ASM effective December 30, 2025.
Summary
BSE has issued the latest update on securities under the Long Term Additional Surveillance Measure (LT-ASM) Framework, effective December 30, 2025. The circular identifies 6 securities newly shortlisted in LT-ASM Framework, 2 securities moving to higher ASM stages, 3 securities moving out of LT-ASM due to inclusion in other frameworks (ESM), and provides a consolidated list of all securities currently under various ASM stages.
Key Points
- 6 securities newly shortlisted for Long Term ASM Framework: Coral Newsprints Ltd, Galaxy Cloud Kitchens Ltd, Krishna Ventures Ltd, Nagpur Power & Industries Ltd, Sadhana Nitro Chem Ltd, and Soma Papers & Industries Ltd
- 2 securities moving to higher Stage II ASM: Shiva Granito Export Ltd and Uravi Defence and Technology Ltd
- 3 securities exiting LT-ASM Framework due to inclusion in ESM Framework: Avance Technologies Ltd, Beryl Securities Ltd, and PH Capital Ltd
- No securities moving to lower ASM stages
- No securities shortlisted for direct Stage IV LT-ASM
- Consolidated list includes securities across ASM Stages I to IV
- Changes effective from December 30, 2025
Regulatory Changes
The Long Term ASM Framework is a surveillance mechanism designed to alert investors about securities with abnormal price movements over extended periods. Securities under LT-ASM are subject to:
- Additional disclosure requirements for trading members
- Enhanced margin requirements
- Price bands and other trading restrictions depending on ASM stage
- Investor awareness obligations for brokers
Securities can move between ASM stages based on continued surveillance triggers or move out entirely if included in stricter frameworks like ESM, GSM, IBC, or Trade-for-Trade.
Compliance Requirements
For Trading Members/Brokers:
- Ensure clients are aware of LT-ASM applicability before executing trades in affected securities
- Collect additional declarations from clients trading in LT-ASM securities
- Apply appropriate margin requirements as per ASM stage
- Monitor price bands and trading restrictions
For Investors:
- Understand the enhanced risk associated with LT-ASM securities
- Be prepared for higher margin requirements
- Note trading restrictions that may apply
- Exercise caution when trading these securities
For Listed Companies:
- Companies whose securities are under LT-ASM should ensure timely disclosures
- Address underlying issues causing surveillance triggers
Important Dates
- December 30, 2025: Effective date for all LT-ASM changes including new additions, stage migrations, and exits
Impact Assessment
Market Impact:
- Trading volumes in newly added LT-ASM securities may decline due to enhanced restrictions
- Securities moving to Stage II face stricter surveillance measures, potentially affecting liquidity
- Investors may reduce positions in affected securities due to higher margins and trading constraints
Investor Impact:
- Higher margin requirements for LT-ASM securities increase capital costs
- Enhanced disclosure requirements may deter retail participation
- Securities exiting to ESM Framework face even stricter controls
Operational Impact:
- Brokers must update systems to reflect new ASM classifications
- Risk management systems need recalibration for margin calculations
- Compliance teams must ensure proper client disclosures and declarations
Specific Securities Impact:
- Stage I New Additions (6 securities): First level of enhanced surveillance, moderate trading restrictions
- Stage II Upgrades (2 securities): Increased scrutiny, higher margins, tighter price bands
- ESM Migrations (3 securities): Moving to Enhanced Surveillance Measure with most stringent controls
Impact Justification
Affects trading parameters for 19+ securities including new additions to LT-ASM Framework and stage migrations, with immediate impact on trading conditions and investor obligations