Description

BSE updates the list of securities under Long Term Additional Surveillance Measure (LT-ASM) framework with additions, movements between stages, and exits effective February 05, 2026.

Summary

BSE has issued updates to the Long Term Additional Surveillance Measure (LT-ASM) framework effective February 05, 2026. The circular includes one new security being added to LT-ASM (CWD Ltd), one security moving to a higher ASM stage (Mizzen Ventures Ltd moving to Stage II), two securities exiting the framework (Dev Labtech Venture Ltd and Dhanashree Electronics Ltd), and provides a consolidated list of all securities currently under various ASM stages.

Key Points

  • CWD Ltd (Scrip Code: 543378, ISIN: INE0H8H01019) newly shortlisted in Long Term ASM Framework
  • Mizzen Ventures Ltd (Scrip Code: 531537) moving from current stage to ASM Stage II
  • Dev Labtech Venture Ltd and Dhanashree Electronics Ltd moving out of LT-ASM Framework
  • No securities moving to lower ASM stages
  • No securities being placed directly in Stage IV
  • Consolidated list includes 19+ securities across different ASM stages (I, II, IV)
  • Securities may exit LT-ASM due to inclusion in Trade for Trade, GSM, ESM, or IBC frameworks

Regulatory Changes

The Long Term Additional Surveillance Measure (LT-ASM) framework continues to operate as per existing guidelines. Securities under LT-ASM are subject to enhanced surveillance and additional trading restrictions based on their stage classification. The framework uses multiple stages (I, II, IV) with progressively stricter surveillance measures.

Compliance Requirements

  • Trading members must be aware of securities under LT-ASM and associated trading restrictions
  • Enhanced due diligence required for transactions in securities under ASM stages
  • Different margin and settlement requirements may apply based on ASM stage
  • Investors should exercise caution when trading securities under surveillance measures

Important Dates

  • Effective Date: February 05, 2026 - All changes to LT-ASM classifications become effective

Impact Assessment

Market Impact: Medium - The changes affect liquidity and trading conditions for the impacted securities. New additions and stage upgrades typically result in reduced trading activity due to enhanced restrictions.

Operational Impact: Trading members need to update their systems and risk management frameworks to reflect the new ASM classifications. Securities moving to higher stages face stricter surveillance including potential Price-to-Price (PTP) delivery-based settlement and additional margin requirements.

Investor Impact: Investors holding or trading these securities should be aware of enhanced surveillance measures which may include trading restrictions, increased margins, and reduced liquidity. Exit from LT-ASM (as seen with Dev Labtech and Dhanashree Electronics) may indicate these securities are now under other restrictive frameworks.

Impact Justification

Affects trading conditions for multiple securities under surveillance framework. LT-ASM applies enhanced monitoring and trading restrictions but impacts a limited set of stocks.