Description

BSE updates the list of securities under Long Term ASM framework effective January 07, 2026, with 4 new securities shortlisted and 3 securities moving out of the framework.

Summary

BSE has updated the list of securities under the Long Term Additional Surveillance Measure (LT-ASM) framework effective January 07, 2026. Four new securities have been shortlisted in LT-ASM, two securities will move to higher ASM stages while continuing in the framework, and three securities are moving out of LT-ASM due to inclusion in other surveillance frameworks.

Key Points

  • 4 new securities shortlisted in Long Term ASM Framework: Lokesh Machines Ltd, Precision Electronics Ltd, S&S Power Switchgear Ltd, and United Van Der Horst Ltd
  • 2 securities moving to higher ASM Stage II: Fabino Enterprises Ltd and Soma Papers & Industries Ltd
  • 3 securities moving out of LT-ASM: Aerpace Industries Ltd (to ESM), Karnavati Finance Ltd (to GSM), and Kinetic Trust Ltd (to ESM)
  • No securities moving to lower ASM stages
  • No securities shortlisted directly in Stage IV
  • Changes effective from January 07, 2026

Regulatory Changes

The Long Term ASM framework continues to identify securities with specific surveillance concerns based on price movements, volatility, and other market parameters. Securities under LT-ASM face additional trading restrictions and margin requirements to protect investor interests.

Compliance Requirements

  • Trading members must ensure compliance with applicable margin requirements for securities under LT-ASM
  • Enhanced disclosure obligations apply to trades in ASM securities
  • Price-to-price trading mechanism applies with specific percentage bands based on ASM stage
  • Physical settlement requirements may apply for certain ASM stage securities

Important Dates

  • Effective Date: January 07, 2026 - All changes to LT-ASM framework become applicable

Impact Assessment

Market Impact: Limited direct market impact as only 7 securities are affected by new classifications. However, traders and investors in these specific securities will face enhanced surveillance measures.

Operational Impact:

  • Trading members need to update their risk management systems for the newly included securities
  • Investors holding affected securities should be aware of additional trading restrictions
  • Securities moving to higher ASM stages (Fabino Enterprises and Soma Papers & Industries) will face stricter surveillance measures
  • Securities moving out to ESM/GSM frameworks will be subject to different surveillance parameters

Investor Impact: Investors in the 4 newly shortlisted securities and 2 securities moving to higher stages should expect reduced liquidity and higher margin requirements.

Impact Justification

Affects trading conditions for specific securities under surveillance framework. Limited number of securities impacted but requires trader awareness.