Description

BSE announces inclusion of securities under ST-ASM Stage I and Stage II with enhanced margin requirements of 50% and 100% respectively, effective April 10, 2026.

Summary

BSE has announced the applicability of Short Term Additional Surveillance Measure (ST-ASM) for a set of securities that have satisfied the criteria for inclusion under ST-ASM Stage I and Stage II. Enhanced margin requirements will be effective from April 10, 2026, applicable to all open positions as on April 9, 2026, and new positions created from April 10, 2026.

Key Points

  • Securities included under ST-ASM Stage I will attract a margin rate of 50% or existing margin, whichever is higher (capped at 100%)
  • Securities included under ST-ASM Stage II will attract a margin rate of 100% or existing margin, whichever is higher (capped at 100%)
  • The ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting under ASM is purely for market surveillance purposes and is not an adverse action against the concerned company
  • Upon exit from the framework, the price band will be reinstated to the band applicable before shortlisting, subject to no other surveillance measure being in force
  • The list of affected securities is provided in Annexure I attached to the notice

Regulatory Changes

This notice is further to earlier Exchange notices: 20240920-71 (September 20, 2024), 20181027-1 (October 27, 2018), 20190719-33 (July 19, 2019), 20201204-56 (December 4, 2020), 20230925-49 (September 25, 2023), and 20240920-63 (September 20, 2024) regarding revision of the ASM framework. The current notice applies the existing framework to newly shortlisted securities.

Compliance Requirements

  • Trading members must ensure applicable margin rates of 50% (Stage I) or 100% (Stage II) are collected on all open positions in shortlisted securities as of April 9, 2026
  • New positions in shortlisted securities from April 10, 2026 must adhere to the enhanced margin requirements
  • Members may contact bse.surv@bseindia.com for clarifications

Important Dates

  • April 8, 2026: Notice date
  • April 9, 2026: Reference date for existing open positions
  • April 10, 2026: Effective date for enhanced margin requirements (both Stage I and Stage II)

Impact Assessment

This circular has a high market impact as it significantly increases the cost of holding or creating positions in the shortlisted securities. ST-ASM Stage I increases margin to a minimum of 50% while Stage II mandates 100% margin, effectively requiring full cash coverage for new positions. This restricts leveraged trading in the affected securities and may lead to forced unwinding of existing leveraged positions. The measure is intended to curb excessive speculation and volatility in the identified securities.

Impact Justification

Imposes significantly elevated margin requirements (50%-100%) on multiple securities effective April 10, 2026, directly impacting trading costs and open positions for market participants.