Description

BSE imposes 100% margins under LT-ASM framework effective May 05, 2026, with securities moving to higher stages and some exiting the framework effective April 30, 2026.

Summary

BSE has issued a notice under the Long Term Additional Surveillance Measure (LT-ASM) framework, imposing 100% margins on select securities effective May 05, 2026. Securities are also being moved to higher LT-ASM stages and some are exiting the framework, both effective April 30, 2026. The framework applies in conjunction with all other prevailing surveillance measures.

Key Points

  • 100% margins will be applicable from May 05, 2026 on all open positions as on May 04, 2026 and all new positions created thereafter
  • Securities in Annexure I (Part A) are newly placed under LT-ASM with 100% margin requirement
  • Securities in Annexure I (Part B) are moved to higher stages of the LT-ASM framework effective April 30, 2026
  • Lower Price Band is also applicable from April 30, 2026 for securities moved to higher stages
  • Securities in Annexure I (Part D) will continue in LT-ASM but be transferred to T/XT/MT/TS Group effective May 05, 2026
  • Securities in Annexure II are moving out of the LT-ASM framework effective April 30, 2026
  • Consolidated list of all securities under the framework is provided in Annexure III
  • Shortlisting is based on XBRL submissions by listed companies and is purely a surveillance action, not an adverse action against the company

Regulatory Changes

This notice references and operates under the revised LT-ASM framework established via the following prior notices:

  • Exchange notice no. 20180321-46 dated March 21, 2018 (original framework)
  • Exchange notice no. 20181027-1 dated October 27, 2018
  • Exchange notice no. 20201204-56 dated December 04, 2020
  • Exchange notice no. 20210604-41 dated June 04, 2021
  • Exchange notice no. 20240809-46 dated August 09, 2024
  • Exchange notice no. 20240920-63 dated September 20, 2024 (latest revision)

The Price Band of a scrip exiting the framework is reinstated to the band applicable before it was shortlisted, unless the scrip is under another surveillance measure.

Compliance Requirements

  • Market participants must maintain 100% margins on open positions in affected securities as of May 04, 2026
  • All new positions in affected securities from May 05, 2026 onwards require 100% margins
  • Members should note the securities moving in, out, and between stages of the LT-ASM framework
  • For clarifications, members may contact bse.surv@bseindia.com

Important Dates

  • April 30, 2026: Securities moved to higher LT-ASM stages; Lower Price Band applicable; Securities in Annexure II exit the framework
  • May 04, 2026: Reference date for open positions subject to 100% margin
  • May 05, 2026: 100% margins become effective; Securities in Annexure I (Part D) transferred to T/XT/MT/TS Group

Impact Assessment

This circular has a high market impact on the affected securities. The imposition of 100% margins significantly increases the cost of holding or creating positions, which typically results in reduced liquidity and increased volatility for the affected stocks. The lower price band further restricts downside trading. Securities moving out of the framework may see improved liquidity as margin requirements normalize. The framework targets securities flagged through market surveillance based on XBRL data, indicating potential concerns about price manipulation or abnormal trading patterns.

Impact Justification

Imposes 100% margin requirements on multiple securities and enforces lower price bands, significantly affecting trading costs and liquidity for affected stocks.