Description

BSE announces changes to Long Term ASM Framework effective February 09, 2026, including new securities under surveillance, stage movements, and securities moving out of the framework.

Summary

BSE has announced changes to the Long Term Additional Surveillance Measure (LT-ASM) Framework effective February 09, 2026. The circular identifies 4 new securities entering the framework, 8 securities moving to lower ASM stages, and 14 securities exiting the framework. No securities are moving to higher stages. The LT-ASM framework is designed to alert investors about securities displaying abnormal price movements and requires additional surveillance measures including higher margins and trade restrictions.

Key Points

  • 4 securities newly shortlisted under Long Term ASM Framework: Loyal Textile Mills Ltd, Prime Focus Ltd, Pune E-Stock Broking Ltd, and Steelman Telecom Ltd
  • 8 securities continuing in LT-ASM but moving to lower surveillance stages (reduced restrictions)
  • 14 securities moving out of Long Term ASM Framework entirely
  • No securities moving to higher surveillance stages
  • Changes effective from February 09, 2026
  • Most securities exiting the framework are being moved to Trade for Trade segment instead

Regulatory Changes

The circular implements periodic review changes to the Long Term ASM Framework:

Part A - New Entries: Four securities enter LT-ASM surveillance framework, subjecting them to additional monitoring and trading restrictions.

Part B - Higher Stage Movements: No securities are being moved to stricter surveillance stages.

Part C - Lower Stage Movements: Eight securities are being moved to less restrictive surveillance stages:

  • A-1 Ltd (moved to Stage III)
  • Axiscades Technologies Ltd (moved to Stage I)
  • BGR Energy Systems Ltd (moved to Stage I)
  • Kothari Industrial Corporation Ltd (moved to Stage I)
  • Lotus Eye Hospital And Institute Ltd (moved to Stage I)
  • Megasoft Ltd (moved to Stage III)
  • NACL Industries Ltd (moved to Stage II)
  • Stallion India Fluorochemicals Ltd (moved to Stage I)

Part D - Direct Stage IV Entries: No securities are being placed directly in Stage IV.

Compliance Requirements

  • Trading members must ensure compliance with ASM stage-specific requirements for affected securities
  • Securities in LT-ASM are subject to 100% upfront margin requirements
  • Price bands and other trading restrictions apply based on ASM stage
  • Investors must be made aware of securities under surveillance framework
  • Members should review their holdings and positions in affected securities

Important Dates

  • Circular Date: February 06, 2026
  • Effective Date: February 09, 2026 (all changes become applicable)

Impact Assessment

Market Impact: The changes affect 26 securities in total. The movement of 8 securities to lower surveillance stages indicates improved market behavior and may lead to increased liquidity and reduced trading costs for those stocks. The exit of 14 securities from LT-ASM (though most move to Trade for Trade) suggests completion of surveillance objectives or transition to other regulatory frameworks.

Trading Impact:

  • New entrants will face stricter trading conditions including higher margins and potential price bands
  • Securities moving to lower stages will benefit from relaxed restrictions
  • Securities exiting to Trade for Trade will continue under different surveillance mechanisms
  • Overall, more securities are seeing reduced restrictions than increased ones, suggesting positive market behavior trends

Investor Impact: Investors holding securities newly entering LT-ASM should expect reduced liquidity and mandatory delivery-based trading. Those holding securities moving to lower stages may see improved trading conditions and potentially better price discovery.

Impact Justification

Affects trading conditions for 26 securities through LT-ASM framework changes, with varied impact including new inclusions, stage movements, and exits from surveillance