Description

BSE announces securities shortlisted for, moved within, and exiting the Long Term Additional Surveillance Measure (LT-ASM) framework effective January 20, 2026.

Summary

BSE has issued the periodic update for the Long Term Additional Surveillance Measure (LT-ASM) framework effective January 20, 2026. The circular identifies securities newly shortlisted for LT-ASM, securities moving between different ASM stages, securities exiting the framework, and provides a consolidated list of all securities under LT-ASM surveillance. Four new securities are being added to Stage I, one security is moving to Stage II, two securities are being directly placed in Stage IV, and two securities are exiting the framework due to inclusion in other surveillance frameworks.

Key Points

  • 4 securities newly shortlisted in LT-ASM Stage I: Auto Pins (India) Ltd, Lippi Systems Ltd, Panjon Ltd, and PG Foils Ltd
  • Anand Rayons Ltd moved from Stage I to Stage II (higher surveillance)
  • 2 securities directly placed in Stage IV: CIAN Agro Industries & Infrastructure Ltd and Synthiko Foils Ltd
  • 2 securities moving out of LT-ASM: Nikki Global Finance Ltd (moved to GSM Framework) and Boston Bio Systems Ltd (moved to GSM Framework)
  • No securities are moving to lower ASM stages in this update
  • Consolidated list includes 15 securities across various ASM stages (partial list provided in annexure)

Regulatory Changes

The LT-ASM framework is applied to securities that show sustained abnormal price movements over an extended period. Securities under this framework face progressive restrictions:

  • Stage I: Enhanced surveillance with specific margin requirements
  • Stage II: Increased surveillance measures with higher margins
  • Stage III: Further tightened measures
  • Stage IV: Direct placement for severe cases (as per notice no.20210604-41)

Securities may graduate to higher stages based on continued concerning price behavior or be removed if they meet criteria for other surveillance frameworks (GSM, ESM, Trade-for-Trade, IBC).

Compliance Requirements

  • Trading members must be aware of securities under LT-ASM and apply appropriate margin requirements
  • Securities in LT-ASM are subject to trade-to-trade settlement with no intraday netting
  • Members must collect additional surveillance deposit/margin as prescribed for respective ASM stages
  • Investors trading in LT-ASM securities must ensure adequate margins and understand the surveillance restrictions
  • Physical settlement mandatory for all LT-ASM securities

Important Dates

  • Effective Date: January 20, 2026 - All changes to LT-ASM framework become applicable
  • Circular Issue Date: January 19, 2026

Impact Assessment

Trading Impact: Securities entering or moving to higher ASM stages will face reduced liquidity due to trade-to-trade settlement requirements and higher margin obligations. This typically leads to decreased trading volumes and wider bid-ask spreads.

Investor Impact: Investors holding or trading these securities must arrange for higher margins and cannot utilize intraday trading strategies. The surveillance designation often signals concerns about price manipulation or unusual volatility patterns.

Market Impact: The framework serves as a cooling mechanism for securities with excessive price volatility. Stage progression indicates continued regulatory concern about the security’s trading pattern. Exit to GSM or ESM frameworks indicates more severe issues requiring different surveillance mechanisms.

Specific Concerns:

  • Anand Rayons Ltd showing continued abnormal behavior warranting Stage II placement
  • CIAN Agro Industries and Synthiko Foils directly placed in Stage IV indicating serious surveillance concerns
  • Nikki Global Finance Ltd and Boston Bio Systems Ltd moved to GSM (Graded Surveillance Measure) suggesting governance or fundamental issues beyond just price volatility

Impact Justification

LT-ASM framework involves stringent trading restrictions including higher margins and trade-to-trade settlement for securities showing concerning price movements. This circular affects multiple securities with stage changes and new inclusions.