Applicability of Long Term Additional Surveillance Measure (LT-ASM)

Description

BSE announces securities shortlisted for Long Term Additional Surveillance Measure (LT-ASM) framework effective January 02, 2026, including new additions and consolidated list of securities under various ASM stages.

Summary

BSE has released the updated list of securities under the Long Term Additional Surveillance Measure (LT-ASM) framework effective January 02, 2026. Four new securities have been shortlisted for inclusion, with one security (Indosolar Ltd) being directly placed in Stage IV. No securities are moving to higher or lower ASM stages, and no securities are exiting the LT-ASM framework at this time.

Key Points

• Four securities newly shortlisted in Long Term ASM Framework: Kinetic Trust Ltd, Medico Intercontinental Ltd, Shantai Industries Ltd, and Vision Cinemas Ltd
• One security (Indosolar Ltd) shortlisted directly in Stage IV of LT-ASM Framework
• No securities moving to higher or lower ASM stages
• No securities moving out of LT-ASM Framework
• Comprehensive consolidated list includes 15+ securities across ASM Stages I, II, and IV
• Effective date: January 02, 2026

Regulatory Changes

The LT-ASM framework continues to operate as a surveillance mechanism to identify and monitor securities that exhibit abnormal price movements or trading patterns over an extended period. Securities under this framework are subject to enhanced surveillance measures including:

• Additional margin requirements
• Price-to-price surveillance
• Potential trading restrictions
• Periodic review for stage progression or exit

Compliance Requirements

• Trading members must ensure awareness of securities under LT-ASM framework
• Enhanced margin requirements apply to transactions in listed securities
• Investors should be informed about surveillance status before trading
• Brokers must comply with additional reporting and monitoring obligations for these securities

Important Dates

• Effective Date: January 02, 2026 - New securities enter LT-ASM framework and updated list becomes applicable

Impact Assessment

Market Impact: Medium - The addition of four securities to LT-ASM framework will result in higher margin requirements and potentially reduced liquidity for these stocks. Investors in these securities will face stricter trading conditions.

Operational Impact: Trading members must update their systems to reflect the surveillance status of newly added securities and ensure compliance with enhanced margin and reporting requirements.

Investor Impact: Investors holding or trading in the affected securities should be aware of increased costs due to higher margins and potential restrictions on trading activities.

Securities Newly Added to LT-ASM (Effective January 02, 2026)

Part A - New Entries

Part D - Direct Stage IV Entry

*As per NSE

Sample of Consolidated List (Annexure III)

The consolidated list includes securities across multiple ASM stages:

Stage I Securities (Sample):

• 3B Films Ltd (544412)
• A B Infrabuild Ltd (544281)*
• Accedere Ltd (531533)
• Aerpace Industries Ltd (534733)
• AIK Pipes and Polymers Ltd (544072)
• Alexander Stamps And Coin Ltd (511463)
• Alphalogic Industries Ltd (543937)
• And others

Stage II Securities (Sample):

• Arcee Industries Ltd (520121)

Stage IV Securities:

• A-1 Ltd (542012)
• Indosolar Ltd (533257)

Note: Complete consolidated list available in original circular annexure.

Impact Justification

Affects trading conditions for multiple securities under surveillance framework, requiring investor awareness but limited to specific stocks