Description

BSE announces updates to Long Term ASM Framework effective January 09, 2026, including securities being added, moved between stages, and removed from the framework.

Summary

BSE has issued an update to the Long Term Additional Surveillance Measure (LT-ASM) Framework effective January 09, 2026. Six securities are being newly shortlisted for LT-ASM, one security is being moved directly to Stage IV, and two securities are exiting the framework. The LT-ASM is a preventive surveillance measure applied to securities showing unusual price movements or excessive volatility.

Key Points

  • 6 securities newly shortlisted in Long Term ASM Framework: Palred Technologies Ltd, Rollatainers Ltd, Sattrix Information Security Ltd, Tahmar Enterprises Ltd, Varyaa Creations Ltd, and Viji Finance Ltd
  • 1 security moved directly to Stage IV LT-ASM: Soma Papers & Industries Ltd
  • 2 securities moving out of LT-ASM Framework: Arcee Industries Ltd and Goyal Aluminiums Ltd
  • No securities are being moved to higher or lower ASM stages within the framework
  • Changes take effect from January 09, 2026
  • Consolidated list of all securities under various ASM stages is provided in Annexure III

Regulatory Changes

The Long Term ASM Framework is part of BSE’s surveillance mechanism to protect investors and maintain market integrity. Securities under LT-ASM are subject to:

  • Trading permitted only once a week (every Monday or next trading day)
  • 100% margin requirement (no leverage)
  • Additional disclosure requirements
  • Price bands applicable as per regulations

The framework uses a stage-based approach (Stage I to Stage IV) with increasingly stringent measures. Securities can enter directly at Stage IV based on severity of concerns as referenced in notice no.20210604-41.

Compliance Requirements

  • Trading members must ensure 100% upfront margin collection for all LT-ASM securities
  • Investors can only trade these securities on designated trading days (Mondays)
  • Broker-dealers must update their risk management systems to reflect the new LT-ASM classifications
  • Market participants should review positions in affected securities before the effective date
  • Surveillance officers must monitor these securities for compliance with LT-ASM conditions

Important Dates

  • Effective Date: January 09, 2026 - All LT-ASM changes become applicable
  • Trading Day: Securities under LT-ASM can only be traded on Mondays (or next trading day if Monday is a holiday)

Impact Assessment

Trading Impact: Securities entering LT-ASM will experience severely restricted liquidity with trading limited to once per week and 100% margin requirements. This typically results in wider bid-ask spreads and reduced trading volumes.

Investor Impact: Existing investors in newly classified LT-ASM securities face limited exit opportunities and must plan trades around the weekly trading window. The 100% margin requirement prevents leveraged trading.

Market Signal: Inclusion in LT-ASM serves as a warning signal about potential price manipulation, excessive volatility, or other market integrity concerns. This often leads to further price pressure and investor caution.

Exit Relief: Two securities (Arcee Industries Ltd and Goyal Aluminiums Ltd) are being removed from LT-ASM, allowing normal trading to resume and improving liquidity for these stocks.

Stage IV Classification: Soma Papers & Industries Ltd being placed directly in Stage IV indicates serious surveillance concerns, representing the highest level of restrictions under the LT-ASM framework.

Impact Justification

Long Term ASM placement significantly impacts trading conditions and investor access to securities, requiring 100% upfront margin and trading only once per week