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 5, 2026.

Summary

BSE has notified the inclusion of certain securities under the Short-Term Additional Surveillance Measure (ST-ASM) framework under both Stage I and Stage II. This circular is issued further to earlier notices revising the ASM framework (most recently Notice No. 20240920-71 dated September 20, 2024). Enhanced margin requirements will apply from May 5, 2026 on both existing open positions and new positions.

Key Points

  • Securities meeting ST-ASM Stage I criteria will attract a minimum margin of 50% or existing margin, whichever is higher, capped at 100%.
  • Securities meeting ST-ASM Stage II criteria will attract a minimum margin of 100% or existing margin, whichever is higher, capped at 100%.
  • The enhanced margins apply to all open positions as on May 4, 2026 and all new positions created from May 5, 2026.
  • The ASM framework operates in conjunction with all other prevailing surveillance measures imposed by the exchanges.
  • Shortlisting under ASM is purely a surveillance action and should not be construed as an adverse action against the concerned company or entity.
  • Upon exit from the framework, the price band of a scrip reverts to the band applicable before shortlisting, unless the scrip remains under another surveillance measure.

Regulatory Changes

No new regulatory framework changes are introduced. This circular applies the existing ST-ASM framework (revised via Exchange notice no. 20240920-71 dated September 20, 2024) to a new set of securities that have satisfied the Stage I and Stage II inclusion criteria.

Compliance Requirements

  • Trading members must ensure that the revised margin requirements (50% for ST-ASM Stage I; 100% for ST-ASM Stage II) are applied on all open positions as of May 4, 2026 and on all new positions from May 5, 2026.
  • Members should refer to the attached Annexure I for the complete list of securities moved into each stage.
  • For clarifications, members may contact BSE Surveillance at bse.surv@bseindia.com.

Important Dates

  • April 30, 2026: Circular issued; securities notified for ST-ASM Stage I and Stage II inclusion.
  • May 4, 2026: Reference date for existing open positions subject to revised margins.
  • May 5, 2026: Revised margin requirements become effective for open positions and all new positions.

Impact Assessment

Traders and investors holding securities included in ST-ASM Stage I will face minimum 50% margin requirements, while those in Stage II will face 100% margins. This significantly increases the cost of carrying or initiating positions in affected scrips and may lead to forced reduction of positions. Retail and institutional participants with leveraged exposure to shortlisted securities should review their portfolios ahead of May 5, 2026. The measure is designed to curb excessive speculation and volatility in the identified securities, and does not reflect any fundamental adverse finding about the companies involved.

Impact Justification

Mandatory margin hikes of up to 100% on affected securities effective May 5, 2026 directly impact trading costs and positions for all market participants holding or trading those scrips.