Description

BSE announces applicability of Long Term ASM framework effective February 25, 2026, shortlisting 13 new securities, moving 2 to higher stages, placing 1 directly in Stage IV, and removing 1 security from the framework.

Summary

BSE has issued a circular on the applicability of the Long Term Additional Surveillance Measure (LT-ASM) framework effective February 25, 2026. The circular covers 13 newly shortlisted securities under Stage I, 2 securities moving to higher ASM stages, 1 security placed directly in Stage IV, and 1 security exiting the LT-ASM framework.

Key Points

  • Part A – New Inclusions (Stage I, effective Feb 25, 2026): 13 securities added to LT-ASM framework including Chandrima Mercantiles Ltd (540829), Crescentis Capital Ltd (531126), Explicit Finance Ltd (530571), Global Longlife Hospital and Research Ltd (543520), IEC Education Ltd (531840), National General Industries Ltd (531651), Omnitex Industries India Ltd (514324), Rishab Special Yarns Ltd (514177), RR Financial Consultants Ltd (511626), Softrak Venture Investment Ltd (531529), Tera Software Ltd (533982), Tree House Education & Accessories Ltd (533540), and Vallabh Steels Ltd (513397).
  • Part B – Stage Upgrades (higher stage, effective Feb 25, 2026): Panjon Ltd (526345) moved to Stage II; Sadhana Nitro Chem Ltd (506642, as per NSE) moved to Stage II.
  • Part C – Stage Downgrades: Nil — no securities moving to a lower ASM stage.
  • Part D – Direct Stage IV Inclusion: Indokem Ltd (504092, ISIN INE716F01012) shortlisted directly in Stage IV LT-ASM as per notice no. 20210604-41, effective February 25, 2026.
  • Annexure II – Exits: Universal Office Automation Ltd (523519, ISIN INE951C01012) moves out of LT-ASM framework due to inclusion in the GSM (Graded Surveillance Measure) framework.

Regulatory Changes

  • Long Term ASM framework updated with new shortlisting and stage movements under SEBI’s surveillance mechanism to address concerns around price/volume abnormalities.
  • Tera Software Ltd and Sadhana Nitro Chem Ltd changes are based on NSE data.
  • Exit of Universal Office Automation Ltd is driven by its migration to the GSM framework, which supersedes LT-ASM for that security.

Compliance Requirements

  • Brokers and trading members must apply applicable LT-ASM stage restrictions (margin requirements, price bands, and trade-to-trade settlement conditions) to the listed securities from February 25, 2026.
  • Investors holding or trading in affected scrips should note enhanced margin obligations and any applicable trade-to-trade settlement requirements as per the respective ASM stage.
  • For securities moving to Stage II, higher margin or settlement constraints apply compared to Stage I.
  • Indokem Ltd, placed directly in Stage IV, will be subject to the most stringent LT-ASM restrictions.

Important Dates

  • Effective Date: February 25, 2026 — all inclusions, stage changes, and exits apply from this date.
  • Circular Date: February 24, 2026.

Impact Assessment

  • Investors/Traders: All 17 affected securities will face altered trading conditions — enhanced margins, restricted price movements, and/or compulsory delivery settlement — which may reduce liquidity and increase trading costs.
  • New Additions (Stage I): 13 stocks face initial LT-ASM restrictions; these are typically small/mid-cap companies flagged for abnormal market activity.
  • Stage II Movers: Panjon Ltd and Sadhana Nitro Chem Ltd face tighter restrictions than before, likely further dampening trading activity.
  • Indokem Ltd (Stage IV): As a direct Stage IV entrant, this stock faces the harshest surveillance conditions, which may significantly impact its tradability.
  • Universal Office Automation Ltd: Exits LT-ASM but enters GSM, so it remains under heightened regulatory scrutiny — not a relaxation of restrictions.
  • Market Integrity: The circular reflects ongoing BSE efforts to protect retail investors from potential price manipulation in small/illiquid securities.

Impact Justification

Directly impacts trading conditions for 17 securities across multiple companies; new LT-ASM inclusions impose enhanced surveillance and trading restrictions, affecting investors and traders in those scrips.