Description

BSE applies Short Term Additional Surveillance Measure (ST-ASM) Stage I and Stage II to select securities, mandating enhanced margins of 50% and 100% respectively effective April 23, 2026.

Summary

BSE has notified the applicability of Short Term Additional Surveillance Measure (ST-ASM) to select securities under Stage I and Stage II classifications, effective April 23, 2026. Securities under Stage I will attract a minimum margin of 50%, while those under Stage II will attract a mandatory 100% margin. This notice is issued under the revised ASM framework referenced in prior exchange notices dating back to 2018.

Key Points

  • Securities meeting ST-ASM Stage I criteria will be subject to a margin rate of 50% or existing margin, whichever is higher, capped at a maximum of 100%.
  • Securities meeting ST-ASM Stage II criteria will be subject to a margin rate of 100% or existing margin, whichever is higher, capped at 100%.
  • Enhanced margins apply to all open positions as on April 22, 2026, and all new positions created from April 23, 2026.
  • The ASM framework operates in conjunction with all other prevailing surveillance measures imposed by exchanges.
  • Shortlisting under ASM is solely a market surveillance action and does not constitute an adverse action against the company or entity.
  • On exiting the framework, the price band of a scrip reverts to the band applicable before its inclusion, unless the scrip remains under another surveillance measure.
  • The list of affected securities is provided in Annexure I attached to the notice.

Regulatory Changes

This circular updates and continues the ASM framework as revised under Exchange notices: 20240920-71 (Sep 20, 2024), 20181027-1 (Oct 27, 2018), 20190719-33 (Jul 19, 2019), 20201204-56 (Dec 4, 2020), 20230925-49 (Sep 25, 2023), and 20240920-63 (Sep 20, 2024). No new structural changes to the framework are introduced; this is a periodic inclusion update.

Compliance Requirements

  • Trading members must ensure ST-ASM Stage I securities carry a minimum margin of 50% (capped at 100%) from April 23, 2026.
  • Trading members must ensure ST-ASM Stage II securities carry a minimum margin of 100% from April 23, 2026.
  • Members must apply enhanced margins to all open positions existing as of April 22, 2026, in addition to new positions.
  • Members should refer to Annexure I for the specific list of affected securities.
  • For clarifications, members may contact BSE Surveillance at bse.surv@bseindia.com.

Important Dates

  • April 21, 2026: Notice date and issuance of ST-ASM applicability circular.
  • April 22, 2026: Reference date for identifying open positions subject to enhanced margins.
  • April 23, 2026: Effective date for enhanced margin requirements under ST-ASM Stage I and Stage II.

Impact Assessment

The inclusion of securities under ST-ASM Stage I and Stage II significantly increases the cost of holding and creating positions in the affected scrips. A mandatory 50%–100% margin requirement will reduce leverage available to traders, likely leading to decreased trading volumes and liquidity in these securities. Existing position holders as of April 22, 2026 must ensure adequate margin availability before market open on April 23, 2026, or face forced square-offs. The measure is intended to deter excessive speculation and protect market integrity for flagged securities.

Impact Justification

Imposition of ST-ASM Stage I (50% margin) and Stage II (100% margin) directly restricts trading conditions for affected securities, impacting liquidity and position-taking for market participants from April 23, 2026.