Description

BSE imposes Long Term Additional Surveillance Measures (LT-ASM) on select securities effective May 2026, including 100% margins on open and new positions from May 6, 2026, and lower price bands from May 4, 2026.

Summary

BSE has issued a notice updating the applicability of the Long Term Additional Surveillance Measure (LT-ASM) framework. Securities listed in Annexure I (Part A) will attract 100% margins effective May 6, 2026, on all open positions as of May 5, 2026 and new positions thereafter. Securities in Annexure I (Part B) are being moved to higher stages of the LT-ASM framework with a lower price band applicable from May 4, 2026. Additionally, certain securities (Annexure I, Part D) will remain in the LT-ASM framework but will be transferred to T/XT/MT/TS Group from May 6, 2026. Securities exiting the framework are listed in Annexure II, and a consolidated list is provided in Annexure III.

Key Points

  • 100% margins applicable from May 6, 2026 on all open positions as of May 5, 2026 and all new positions
  • Securities moving to higher LT-ASM stages will face lower price bands effective May 4, 2026
  • Some LT-ASM securities will be transferred to T/XT/MT/TS Group from May 6, 2026
  • Securities exiting the LT-ASM framework are listed in Annexure II
  • Shortlisting is based on XBRL submissions by listed companies and is purely a surveillance action
  • Price band of exiting scrips reverts to pre-framework levels unless covered by another surveillance measure

Regulatory Changes

The notice references the revised LT-ASM framework established via notices dated March 21, 2018, October 27, 2018, December 4, 2020, August 9, 2024, and September 20, 2024. The current update applies the framework to a new set of securities and revises stage classifications for existing ones.

Compliance Requirements

  • Market participants must maintain 100% margins on positions in LT-ASM securities from May 6, 2026
  • Members with queries should contact bse.surv@bseindia.com
  • LT-ASM framework operates in conjunction with all other prevailing surveillance measures
  • Brokers and participants must monitor group transfers (to T/XT/MT/TS) effective May 6, 2026

Important Dates

  • May 4, 2026: Lower price band applicable for securities moving to higher LT-ASM stages; securities exit LT-ASM framework
  • May 5, 2026: Reference date for open positions subject to 100% margin
  • May 6, 2026: 100% margins effective on open and new positions; group transfers to T/XT/MT/TS effective

Impact Assessment

The imposition of 100% margins significantly increases the cost of holding or taking positions in affected securities, reducing leverage and potentially impacting liquidity. The lower price band restricts downside trading flexibility. Securities moved to T/XT/MT/TS groups face additional trading restrictions. Market participants holding positions in these securities will need to arrange additional capital by May 5, 2026. The measure is a surveillance action and does not reflect on the fundamental standing of the companies involved.

Impact Justification

Imposes 100% margin requirements and lower price bands on securities under LT-ASM, directly affecting trading costs and liquidity for impacted stocks.