Description
BSE announces changes to Long Term ASM framework effective January 07, 2026, including new securities shortlisted, securities moving to higher/lower stages, and securities moving out of the framework.
Summary
BSE has issued an update on the Long Term Additional Surveillance Measure (LT-ASM) framework effective January 07, 2026. The circular identifies four new securities being shortlisted under LT-ASM, two securities moving to higher ASM stages, three securities exiting the framework, and provides a consolidated list of all securities currently under various ASM stages.
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 Framework: Aerpace Industries Ltd (to ESM), Karnavati Finance Ltd (to GSM), and Kinetic Trust Ltd (to ESM)
- No securities moving to lower ASM stages or directly to Stage IV
- Changes effective from January 07, 2026
- Consolidated list includes securities across ASM Stages I, II, and IV
Regulatory Changes
The Long Term ASM Framework continues to operate as a surveillance mechanism for securities exhibiting certain risk characteristics. Securities are classified into different stages (I, II, IV) based on their risk profile and surveillance requirements. The framework includes provisions for:
- Shortlisting new securities based on predefined criteria
- Progressive movement to higher stages for continued non-compliance or risk factors
- Movement to lower stages for improved compliance
- Exit from LT-ASM when securities are included in other frameworks (Trade for Trade, GSM, ESM, IBC)
Compliance Requirements
- Market participants must note the enhanced surveillance applicable to securities listed in Annexure I (new entries)
- Trading members should be aware of the stage changes for securities in Annexure I Part B (moving to Stage II)
- Securities moving out of LT-ASM (Annexure II) will be subject to other frameworks: ESM Framework for Aerpace Industries Ltd and Kinetic Trust Ltd, GSM Framework for Karnavati Finance Ltd
- All securities under LT-ASM are subject to specific trading restrictions and surveillance measures as per their assigned stage
Important Dates
- Effective Date: January 07, 2026 - All changes to LT-ASM framework come into effect
Impact Assessment
Market Impact: The inclusion of new securities and stage changes affects trading conditions for these specific stocks. Securities under LT-ASM typically face additional restrictions such as reduced price bands, increased margin requirements, or trade-for-trade settlement.
Investor Impact: Investors holding or trading in the affected securities should be aware of enhanced surveillance measures which may include higher margins, settlement restrictions, and increased monitoring.
Operational Impact: The movement of three securities out of LT-ASM into other frameworks (ESM and GSM) indicates either deteriorating conditions requiring stricter oversight or specific regulatory actions. Fabino Enterprises Ltd and Soma Papers & Industries Ltd moving to Stage II ASM indicates escalating surveillance due to continued concerns.
Annexure Details
Part A - New Securities Shortlisted (4 securities)
- Lokesh Machines Ltd (532740, INE397H01017)
- Precision Electronics Ltd (517258, INE143C01024)
- S&S Power Switchgear Ltd (517273, INE902B01017)
- United Van Der Horst Ltd (522091, INE890G01021)
Part B - Moving to Higher Stage (2 securities)
- Fabino Enterprises Ltd (543444) - Moving to Stage II
- Soma Papers & Industries Ltd (516038) - Moving to Stage II
Part C - Moving to Lower Stage
NIL
Part D - Direct Stage IV Shortlisting
NIL
Securities Moving Out (3 securities)
- Aerpace Industries Ltd (534733) - Moving to ESM Framework
- Karnavati Finance Ltd (538928) - Moving to GSM Framework
- Kinetic Trust Ltd (531274) - Moving to ESM Framework
Impact Justification
Affects multiple securities with enhanced surveillance measures that impact trading conditions, but impacts specific stocks rather than broad market