Description

BSE announces changes to securities under Long Term Additional Surveillance Measure (LT-ASM) framework effective January 19, 2026, including new additions, stage movements, and exits from the framework.

Summary

BSE has issued updates to the Long Term Additional Surveillance Measure (LT-ASM) framework effective January 19, 2026. The circular identifies securities being newly added to LT-ASM, those moving to higher or lower ASM stages, and securities exiting the framework. Three new securities are being shortlisted under LT-ASM, one security is moving to a higher stage, six securities are moving to lower stages, and eight securities are exiting the framework entirely.

Key Points

  • 3 securities newly shortlisted in Long Term ASM Framework: Boston Bio Systems Ltd, Gabriel Pet Straps Ltd, and ITCONS E-Solutions Ltd
  • 1 security moving to higher ASM Stage II: Shahlon Silk Industries Ltd
  • 6 securities moving to lower ASM stages (1 to Stage I, 2 to Stage III, 1 to Stage II)
  • 8 securities moving out of Long Term ASM Framework entirely
  • No securities shortlisted for direct Stage IV under LT-ASM
  • Changes effective from January 19, 2026
  • Consolidated list of all securities under LT-ASM provided with their respective stages

Regulatory Changes

The Long Term ASM framework applies enhanced surveillance to securities that exhibit concerning trading patterns over extended periods. Securities under this framework face restrictions including:

  • Price bands and trading limitations based on ASM stage (I through IV)
  • Enhanced margin requirements
  • Increased scrutiny of trading activities
  • Potential restrictions on derivatives and other instruments

Securities can move between stages based on their trading behavior and compliance with market norms.

Compliance Requirements

  • Market participants must note the ASM stage applicable to each security
  • Trading members should ensure compliance with stage-specific trading restrictions
  • Investors should be aware of enhanced surveillance measures and associated trading limitations
  • Additional margin requirements must be maintained as per the applicable ASM stage
  • Clients must be informed about securities under LT-ASM and associated restrictions

Important Dates

  • Effective Date: January 19, 2026 - All changes to LT-ASM framework take effect
  • Circular Date: January 16, 2026

Impact Assessment

Securities Entering LT-ASM: The three newly shortlisted securities will face enhanced surveillance and trading restrictions, potentially impacting liquidity and investor interest. These companies may need to improve their compliance and address concerns that led to their inclusion.

Securities Moving to Higher Stages: Shahlon Silk Industries moving to Stage II indicates deteriorating trading patterns or compliance issues, resulting in stricter surveillance measures.

Securities Moving to Lower Stages: Six securities showing improvement in trading behavior and compliance are being rewarded with reduced surveillance intensity, which should improve liquidity and reduce trading friction.

Securities Exiting Framework: Eight securities including Tata Investment Corporation Ltd are exiting LT-ASM, though some are moving to other frameworks (Trade for Trade, GSM, ESM, or IBC), which may impose different restrictions. Only truly compliant securities exit all surveillance frameworks entirely.

Market Impact: The overall impact is moderate as it affects specific securities rather than broad market segments. Investors holding these securities should review their positions considering the changed surveillance status.

Impact Justification

Affects multiple securities with enhanced surveillance measures that impact trading conditions and investor participation, but limited to specific stocks rather than broad market impact