Applicability of Long Term Additional Surveillance Measure (LT-ASM) - Effective March 02, 2026

Description

BSE announces changes to the Long Term ASM framework effective March 02, 2026, including 7 new securities added, 6 securities moved to lower ASM stages, and 25 securities exiting the framework.

Summary

BSE has issued an update to the Long Term Additional Surveillance Measure (LT-ASM) framework, effective March 02, 2026. The circular details four categories of changes: 7 new securities shortlisted into LT-ASM (Part A), no securities moved to higher ASM stages (Part B), 6 securities moved to lower ASM stages (Part C), and 25 securities exiting the LT-ASM framework entirely (Annexure II). No securities were directly placed in Stage IV under Part D.

Key Points

• 7 new securities added to LT-ASM framework effective March 02, 2026 (Part A)
• No securities moved to a higher ASM stage (Part B: Nil)
• 6 securities downgraded to lower ASM stages (Part C), indicating partial improvement in their surveillance status
• No securities placed directly in Stage IV LT-ASM (Part D: Nil)
• 25 securities exiting the LT-ASM framework entirely effective March 02, 2026 (Annexure II), indicating restoration of normal trading conditions
• Securities under LT-ASM are subject to enhanced margin requirements, trade-for-trade settlement, and tighter price bands

Regulatory Changes

Newly Added to LT-ASM (Part A):

Moved to Lower ASM Stage (Part C):

Exiting LT-ASM (Annexure II): 25 securities including: 3C IT Solutions and Telecoms (India) Ltd, Asston Pharmaceuticals Ltd, Auro Laboratories Ltd, Bedmutha Industries Ltd, Comrade Appliances Ltd, Finelistings Technologies Ltd, Hindustan Bio Sciences Ltd, IZMO Ltd, Netlink Solutions India Ltd, Padmanabh Industries Ltd, Phyto Chem India Ltd, Rainbow Foundations Ltd, Shanti Guru Industries Ltd, Sharp Investments Ltd, Spinaroo Commercial Ltd, Stallion India Fluorochemicals Ltd, Standard Batteries Ltd, Svam Software Ltd, T T Ltd, True Colors Ltd, TTI Enterprise Ltd, Valiant Communications Ltd, Vardhman Polytex Ltd, Virat Leasing Ltd, and Waterbase Ltd.

Compliance Requirements

• Brokers and trading members must update trading systems to apply the revised LT-ASM classifications from March 02, 2026
• Clients holding newly added securities should be informed of enhanced margin and trade-for-trade settlement requirements
• Clearing members must ensure adequate margin collection for newly added LT-ASM securities
• Securities exiting LT-ASM revert to normal trading conditions; members should update margin and settlement parameters accordingly

Important Dates

• Circular Date: February 27, 2026
• Effective Date for all changes: March 02, 2026

Impact Assessment

High Impact: The addition of 7 securities to LT-ASM imposes immediate trading restrictions including trade-for-trade settlement and higher margin requirements, reducing liquidity and increasing the cost of trading for investors in these counters. Retail and institutional investors holding these securities may face forced liquidation pressures due to margin increases.

Positive Development: 25 securities exiting LT-ASM signals regulatory confidence in their improved trading behaviour, restoring normal liquidity conditions. Similarly, 6 securities being moved to lower ASM stages represents partial normalisation.

Market Segment Affected: Primarily small-cap and micro-cap equity segment on BSE. The framework is designed to protect investors from price manipulation and abnormal price movements in low-liquidity stocks.

Investor Action Required: Investors in newly added securities should review margin requirements with their brokers before March 02, 2026. Investors in exiting securities can expect improved liquidity and normal settlement from the effective date.

Impact Justification

LT-ASM changes directly impose trading restrictions (trade-for-trade settlement, price bands, margins) on a large number of equity securities, significantly affecting liquidity and trading behaviour for investors and traders holding or targeting these stocks.