Description

BSE notice on LT-ASM framework updates effective February 26, 2026. No new securities are being added or moved between stages, while three securities are exiting the framework due to inclusion in GSM and ESM frameworks.

Summary

BSE has issued its periodic update on the Long Term Additional Surveillance Measure (LT-ASM) framework, effective February 26, 2026. No securities are being newly added to LT-ASM (Parts A and D: Nil), and no securities are being moved to higher or lower ASM stages (Parts B and C: Nil). Three securities are exiting the LT-ASM framework, two due to inclusion in the Graded Surveillance Measure (GSM) framework and one due to inclusion in the Enhanced Surveillance Measure (ESM) framework.

Key Points

  • No new additions: Zero securities are being shortlisted into the LT-ASM framework (Annexure I, Parts A and D: Nil)
  • No stage movements: No securities are being moved to higher or lower ASM stages (Parts B and C: Nil)
  • Three securities exiting LT-ASM (Annexure II), effective February 26, 2026:
    • Gconnect Logitech and Supply Chain Ltd (Scrip Code: 544156, ISIN: INE0QHY01011) — exiting due to inclusion in GSM framework
    • NDA Securities Ltd (Scrip Code: 511535, ISIN: INE026C01013) — exiting due to inclusion in ESM framework
    • Rishab Special Yarns Ltd (Scrip Code: 514177, ISIN: INE351D01013) — exiting due to inclusion in GSM framework
  • A large consolidated list of securities (Annexure III) continues under LT-ASM across Stage I, II, and III, including names such as 3B Films Ltd, 3C IT Solutions, A-1 Ltd, Aarey Drugs & Pharmaceuticals, and many others

Regulatory Changes

The LT-ASM framework update reflects BSE’s ongoing surveillance regime for securities exhibiting abnormal price/volume behavior over an extended period. Securities graduating from LT-ASM to GSM or ESM are subject to stricter trading conditions under those respective frameworks. The transition does not represent a relaxation of oversight—rather, the securities move to more intensive surveillance regimes.

Compliance Requirements

  • Brokers and trading members: Must update client-facing systems to reflect the change in surveillance status for the three exiting securities (544156, 511535, 514177) and apply the applicable GSM/ESM trading restrictions instead of LT-ASM conditions from February 26, 2026
  • Investors holding LT-ASM securities: Should note that all securities in Annexure III remain subject to LT-ASM trading restrictions (e.g., trade-for-trade settlement, additional margin requirements depending on stage)
  • No action required for securities not listed in this circular

Important Dates

  • Effective date: February 26, 2026 — all changes (exits from LT-ASM, continued status for Annexure III securities) take effect
  • Circular date: February 25, 2026

Impact Assessment

The overall market impact of this update is moderate. The absence of new additions to LT-ASM signals no fresh concerns in this surveillance cycle. The three securities moving out of LT-ASM are transitioning to GSM or ESM, which typically implies heightened restrictions on trading frequency, settlement mode, or margin requirements. Investors in these stocks should review the specific conditions imposed by the GSM/ESM frameworks. The large consolidated list in Annexure III confirms that numerous securities (primarily small-cap and SME segment stocks) remain under LT-ASM monitoring, and investors in those counters continue to face trade-for-trade settlement and stage-specific margin obligations.

Impact Justification

No new securities added to LT-ASM and no stage movements, limiting broad market impact. However, three securities exit LT-ASM by graduating to stricter GSM/ESM frameworks, and the consolidated list covers numerous small/mid-cap stocks under ongoing surveillance restrictions.