Description

BSE notifies inclusion of securities under ST-ASM Stage I and Stage II with enhanced margin requirements of 50% and 100% respectively, effective May 4, 2026.

Summary

BSE has notified the inclusion of securities under the Short-Term Additional Surveillance Measure (ST-ASM) framework under Stage I and Stage II. Securities under ST-ASM Stage I will attract a minimum margin of 50% (capped at 100%), while those under ST-ASM Stage II will attract a mandatory 100% margin, both effective May 4, 2026.

Key Points

  • Securities listed in Annexure I qualify for ST-ASM Stage I with a minimum margin of 50% or existing margin (whichever is higher), capped at 100%
  • Separate set of securities in Annexure I qualify for ST-ASM Stage II with a mandatory margin of 100% or existing margin (whichever is higher)
  • Margin requirements apply to all open positions as on April 30, 2026, and all new positions from May 4, 2026
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting under ASM is purely for market surveillance and should not be construed as adverse action against listed companies
  • Upon exit from the framework, the scrip’s price band reverts to its pre-ASM level (unless under another surveillance measure)

Regulatory Changes

This notice is issued further to 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) regarding revision of the ASM framework. The current circular applies the existing ST-ASM framework to newly qualifying securities.

Compliance Requirements

  • Trading members must ensure enhanced margin collection for all affected securities under ST-ASM Stage I (minimum 50%, maximum 100%) and Stage II (100%) from May 4, 2026
  • Members must apply the margin requirements to open positions as on April 30, 2026
  • For clarifications, members may contact BSE at bse.surv@bseindia.com

Important Dates

  • April 29, 2026: Notice date
  • April 30, 2026: Reference date for existing open positions subject to new margin requirements
  • May 4, 2026: Effective date for enhanced margin requirements under both ST-ASM Stage I and Stage II

Impact Assessment

Traders and investors holding positions in the shortlisted securities will face substantially higher margin requirements from May 4, 2026. Stage II securities require 100% margin, effectively restricting leveraged trading. This may lead to forced position closures for participants unable to meet the enhanced margin calls, potentially increasing short-term volatility in affected scrips. Market participants should review their portfolios against Annexure I to identify impacted holdings and plan margin funding accordingly.

Impact Justification

Significant margin requirement changes (50%-100%) affecting multiple securities under ST-ASM framework, with immediate operational impact from May 4, 2026.