Description

BSE announces changes to Long Term ASM Framework effective December 31, 2025, including 3 new securities shortlisted and 2 securities moved to higher ASM stages.

Summary

BSE has announced updates to the Long Term Additional Surveillance Measure (LT-ASM) Framework effective December 31, 2025. Three securities have been newly shortlisted under LT-ASM, and two existing securities will be moved to higher ASM stages. No securities are being moved to lower stages or exiting the framework.

Key Points

  • 3 new securities shortlisted in Long Term ASM Framework: ANS Industries Ltd, K&R Rail Engineering Ltd, and Prakash Steelage Ltd
  • 2 securities moved to higher Stage II ASM: Refex Renewables & Infrastructure Ltd and U. H. Zaveri Ltd
  • No securities moved to lower ASM stages
  • No securities moving out of Long Term ASM Framework
  • No securities placed directly in Stage IV under Direct stage IV LT-ASM Framework
  • Consolidated list includes 14+ securities under various ASM stages (ranging from Stage I to Stage IV)

Regulatory Changes

The Long Term ASM Framework continues to monitor securities exhibiting unusual price movements or excessive volatility over extended periods. Securities under this framework face additional trading restrictions including:

  • Enhanced margin requirements
  • Trade-for-trade settlement (no intraday squaring off)
  • Price bands and other surveillance measures
  • Progressive escalation through ASM stages (I through IV) based on continued anomalous behavior

Compliance Requirements

  • Trading members must ensure compliance with enhanced surveillance measures for affected securities
  • Investors should be aware of trade-for-trade settlement requirements
  • Higher margin requirements apply for positions in LT-ASM securities
  • No delivery-based short selling permitted in these securities

Important Dates

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

Securities Affected

Part A - Newly Shortlisted (Stage I):

  1. ANS Industries Ltd (531406, INE234J01018)
  2. K&R Rail Engineering Ltd (514360, INE078T01026)
  3. Prakash Steelage Ltd (533239, INE696K01024)

Part B - Moved to Higher Stage II:

  1. Refex Renewables & Infrastructure Ltd (531260, INE332F01018)
  2. U. H. Zaveri Ltd (541338, INE556Z01010)

Impact Assessment

Market Impact: Medium - The inclusion of securities in LT-ASM typically results in reduced liquidity and increased trading costs due to trade-for-trade settlement and higher margins. This affects both retail and institutional investors holding or trading these securities.

Investor Impact: Investors in the 5 affected securities will face stricter trading conditions. The two securities moving to Stage II will see further tightening of surveillance measures, potentially leading to reduced trading volumes and higher volatility.

Operational Impact: Brokers and trading members must update their systems to enforce additional margin requirements and settlement restrictions for these securities from December 31, 2025.

Impact Justification

Affects trading conditions for 5 securities with heightened surveillance measures, impacting liquidity and trading costs for these stocks