Description

BSE circular detailing securities being added to, moved within, or removed from the Long Term Additional Surveillance Measure (LT-ASM) framework effective February 03, 2026.

Summary

BSE has issued updates to the Long Term Additional Surveillance Measure (LT-ASM) framework effective February 03, 2026. The circular identifies securities being newly included in LT-ASM, securities moving to higher or lower ASM stages, securities being directly placed in Stage IV, and securities exiting the framework due to inclusion in other surveillance frameworks (ESM, GSM, Trade for Trade, IBC).

Key Points

  • Bhatia Colour Chem Ltd newly shortlisted in Long Term ASM Framework
  • Dhanashree Electronics Ltd moved to higher Stage II ASM
  • CIAN Agro Industries & Infrastructure Ltd directly placed in Stage IV ASM
  • Three securities moving out of LT-ASM due to inclusion in ESM Framework: Paras Petrofils Ltd, Rekvina Laboratories Ltd, and Shree Krishna Infrastructure Ltd
  • No securities moving to lower ASM stages in this update
  • Consolidated list includes 17+ securities across various ASM stages

Regulatory Changes

The LT-ASM framework continues to be applied based on BSE’s surveillance criteria. Securities can be:

  • Newly added to the framework
  • Moved to higher stages (indicating increased surveillance concerns)
  • Moved to lower stages (indicating improved compliance)
  • Directly placed in Stage IV for severe cases
  • Removed when included in other stricter frameworks (ESM, GSM, Trade for Trade, IBC)

Compliance Requirements

  • Trading members and investors must note the ASM stage classifications for affected securities
  • Securities in LT-ASM are subject to additional surveillance measures including potential trading restrictions, price bands, or additional margin requirements
  • Stage IV securities face the most stringent surveillance measures
  • Market participants should review their positions in affected securities

Important Dates

  • Effective Date: February 03, 2026
  • Circular Date: February 02, 2026

Impact Assessment

Trading Impact: Securities placed in or moved to higher ASM stages will face enhanced surveillance, potentially including reduced liquidity, tighter price bands, higher margin requirements, and increased scrutiny. Stage IV placement represents the highest level of concern.

Investor Impact: Investors holding securities in LT-ASM framework should be aware of potential trading restrictions and enhanced monitoring. Movement to higher stages indicates deteriorating compliance or market concerns.

Market Operations: The removal of three securities from LT-ASM to ESM framework indicates these securities now fall under the Enhanced Surveillance Measure, which typically involves more stringent monitoring for concerns related to corporate governance, financial health, or market integrity.

Specific Securities:

  • Part A: Bhatia Colour Chem Ltd - New LT-ASM inclusion
  • Part B: Dhanashree Electronics Ltd - Escalated to Stage II
  • Part D: CIAN Agro Industries & Infrastructure Ltd - Direct Stage IV placement (most severe)
  • Annexure II: Paras Petrofils Ltd, Rekvina Laboratories Ltd, Shree Krishna Infrastructure Ltd - Moved to ESM framework

Impact Justification

Direct impact on trading conditions for affected securities with stage movements affecting liquidity and trading restrictions