Description

BSE announces securities shortlisted for Long Term ASM Framework and securities moving out, effective January 22, 2026.

Summary

BSE has issued an updated list of securities under the Long Term Additional Surveillance Measure (LT-ASM) Framework, effective January 22, 2026. Three new securities have been shortlisted for LT-ASM, while two securities are moving out due to inclusion in other frameworks (GSM and ESM). The circular provides consolidated lists of all securities currently under various ASM stages.

Key Points

  • 3 new securities added to Long Term ASM Framework: 3C IT Solutions and Telecoms (India) Ltd (544190), Olympic Cards Ltd (534190), and Pearl Green Clubs and Resorts Ltd (543540)
  • 2 securities moving out of LT-ASM: Auto Pins (India) Ltd (531994) moved to GSM Framework, United Van Der Horst Ltd (522091) moved to ESM Framework
  • No securities moving to higher or lower ASM stages within the LT-ASM framework
  • No securities directly placed in Stage IV under the LT-ASM framework
  • Consolidated list includes 17 securities across different ASM stages (majority in Stage I, one in Stage II, one in Stage IV)
  • Changes effective from market opening on January 22, 2026

Regulatory Changes

The Long Term ASM Framework continues to operate as a surveillance mechanism to monitor securities that exhibit unusual price movements or volatility patterns over extended periods. Securities under LT-ASM are subject to enhanced monitoring and may have additional trading restrictions including price bands, margin requirements, and trade-to-trade settlement.

Compliance Requirements

  • Trading members must ensure awareness of securities under LT-ASM Framework
  • Enhanced margin requirements may apply to transactions in these securities
  • Investors should be informed about surveillance measures applicable to these stocks
  • Trade-to-trade settlement may be applicable with no intraday netting
  • Members must comply with applicable ASM stage-specific restrictions

Important Dates

  • Effective Date: January 22, 2026 - All changes to LT-ASM Framework become applicable

Impact Assessment

Market Impact: High - The inclusion of securities in LT-ASM Framework typically results in reduced liquidity and increased transaction costs due to trade-to-trade settlement and higher margin requirements. The three newly added securities will face enhanced scrutiny.

Investor Impact: Investors holding or trading in the affected securities should be aware of potential trading restrictions, higher margins, and reduced liquidity. The two securities moving out (Auto Pins and United Van Der Horst) are being placed in even more restrictive frameworks (GSM and ESM), indicating serious concerns.

Operational Impact: Brokers and trading members need to update their systems to reflect the new ASM classifications and ensure proper margin collection and settlement procedures for these securities.

Impact Justification

LT-ASM Framework affects trading conditions for multiple securities with enhanced surveillance measures, impacting investor participation and liquidity.