Description

BSE imposes 100% margins under LT-ASM framework effective May 7, 2026 on select securities, with lower price bands effective May 5, 2026, and updates to securities moving in/out of the framework.

Summary

BSE has updated the Long Term Additional Surveillance Measure (LT-ASM) framework, imposing 100% margin requirements on select securities effective May 7, 2026 for all open positions as of May 6, 2026 and new positions created thereafter. A lower price band is applicable from May 5, 2026. The notice also identifies securities moving to higher LT-ASM stages and securities exiting the framework.

Key Points

  • 100% margins applicable from May 7, 2026 on all open positions as on May 6, 2026 and new positions created from May 7, 2026 onwards (Annexure I, Part A)
  • Securities moving to higher stages of LT-ASM framework effective May 5, 2026 (Annexure I, Part B)
  • Lower Price Band applicable from May 5, 2026 for securities placed under the framework
  • Certain securities to continue in LT-ASM but transferred to T/XT/MT/TS Group effective May 7, 2026 (Annexure I, Part D)
  • Securities moving out of LT-ASM framework effective May 5, 2026 listed in Annexure II
  • Consolidated list of all securities under the framework available in Annexure III
  • Shortlisting is based on XBRL submissions by listed companies

Regulatory Changes

This notice references the revised LT-ASM framework originally introduced via Exchange notice no. 20180321-46 (March 21, 2018) and subsequently revised through notices dated October 27, 2018, December 04, 2020, August 09, 2024, and September 20, 2024. The current update applies the framework parameters including stage progressions, margin requirements, and group transfers per the latest revision.

Compliance Requirements

  • Market participants must ensure 100% margins are maintained on all open positions in LT-ASM securities from May 7, 2026
  • Members should note that LT-ASM operates in conjunction with all other prevailing surveillance measures
  • Price bands for securities exiting the framework will revert to pre-framework levels, unless the security is subject to another surveillance measure
  • Specific lists of affected securities are provided in the attached annexures; participants should review Annexures I, II, and III
  • Queries may be directed to bse.surv@bseindia.com

Important Dates

  • May 5, 2026: Lower price band applicable; securities moving to higher LT-ASM stages effective; securities exiting LT-ASM effective
  • May 6, 2026: Reference date for open positions subject to 100% margin from May 7
  • May 7, 2026: 100% margin requirement effective for open and new positions; transfer of certain securities to T/XT/MT/TS Group effective

Impact Assessment

The 100% margin requirement significantly increases the cost of holding or initiating positions in affected securities, which will likely reduce liquidity and trading volumes in those scrips. Traders and investors with existing open positions must arrange additional capital by May 6, 2026. The lower price band restricts downside price movement but may also create one-sided markets. Securities moving out of the framework will see price bands reinstated to prior levels (subject to no other surveillance measure applying), potentially improving liquidity. The measure is purely surveillance-driven and does not constitute any adverse regulatory finding against the listed companies.

Impact Justification

Imposition of 100% margins and lower price bands directly affects trading costs and liquidity for multiple securities; traders with open positions must act before May 6, 2026.