Description

BSE announces securities shortlisted, moved between stages, and removed from Long Term ASM Framework effective December 31, 2025.

Summary

BSE has issued updates to the Long Term Additional Surveillance Measure (LT-ASM) Framework effective December 31, 2025. Three new securities have been shortlisted for inclusion in LT-ASM, two securities will move to higher ASM stages, and no securities are being removed from the framework or moved to lower stages.

Key Points

  • 3 securities newly shortlisted in Long Term ASM Framework: ANS Industries Ltd, K&R Rail Engineering Ltd, and Prakash Steelage Ltd
  • 2 securities moving to higher ASM Stage II: Refex Renewables & Infrastructure Ltd and U. H. Zaveri Ltd
  • No securities moving to lower ASM stages
  • No securities moving out of Long Term ASM Framework
  • No securities placed directly in Stage IV Long Term ASM
  • Consolidated list of securities in LT-ASM includes multiple companies across different ASM stages (I to IV)

Regulatory Changes

The Long Term ASM Framework continues BSE’s surveillance mechanism to monitor securities exhibiting unusual price movements or trading patterns over extended periods. Securities are classified into different stages based on their surveillance parameters, with higher stages indicating stricter monitoring and trading restrictions.

Compliance Requirements

  • Market participants must note the ASM stage classification for affected securities
  • Trading in LT-ASM securities is subject to specific conditions including price bands, margin requirements, and settlement obligations
  • Broker-dealers should update their systems to reflect the new ASM classifications
  • Investors trading in these securities must be aware of enhanced surveillance measures and associated restrictions

Important Dates

  • Effective Date: December 31, 2025 - All changes to LT-ASM Framework become applicable

Impact Assessment

Market Impact: The inclusion of new securities and movement of existing securities to higher ASM stages will result in stricter trading conditions, potentially reducing liquidity and increasing transaction costs for affected stocks. The framework aims to protect investor interests by curbing excessive speculation.

Operational Impact: Trading members will need to implement enhanced due diligence for transactions in these securities, including additional margin requirements and potential trade-for-trade settlement conditions depending on the ASM stage.

Investor Impact: Retail and institutional investors holding or trading these securities should expect reduced liquidity, wider bid-ask spreads, and additional compliance requirements. The surveillance measures serve as a cautionary indicator of elevated risk in these securities.

Impact Justification

Affects trading conditions for specific securities under surveillance framework, impacting liquidity and trading parameters for listed stocks