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 08, 2026.

Summary

BSE has notified the applicability of the Short Term Additional Surveillance Measure (ST-ASM) on securities listed in Annexure I. Securities have been shortlisted under both ST-ASM Stage I (50% margin) and ST-ASM Stage II (100% margin), effective May 08, 2026. This action is pursuant to the revised ASM framework established through prior exchange notices dating back to October 2018.

Key Points

  • Securities in Annexure I are placed under ST-ASM Stage I with a minimum margin of 50% (capped at 100%)
  • Additional securities in Annexure I are placed under ST-ASM Stage II with a mandatory margin of 100%
  • Enhanced margins apply to all open positions as on May 07, 2026 and all new positions from May 08, 2026
  • ST-ASM operates in conjunction with all other prevailing surveillance measures imposed by exchanges
  • Shortlisting under ASM is purely for market surveillance and should not be construed as an adverse action against the listed company
  • Price band of scrips exiting the framework will be reinstated to pre-ASM levels, subject to no other surveillance measure being applicable

Regulatory Changes

The circular operates under the revised ASM framework as established by the following prior notices:

  • Notice 20240920-71 dated September 20, 2024
  • Notice 20181027-1 dated October 27, 2018
  • Notice 20190719-33 dated July 19, 2019
  • Notice 20201204-56 dated December 04, 2020
  • Notice 20230925-49 dated September 25, 2023
  • Notice 20240920-63 dated September 20, 2024

Compliance Requirements

  • Brokers/Members: Must ensure margin collection of at least 50% (Stage I) or 100% (Stage II) on all affected securities from May 08, 2026
  • Margin applies to: All open positions as on May 07, 2026 and all new positions created from May 08, 2026
  • Members must refer to Annexure I (attached to original notice) to identify affected securities
  • For clarifications, members may write to bse.surv@bseindia.com

Important Dates

  • Notice Date: May 06, 2026
  • Reference Date for Open Positions: May 07, 2026 (enhanced margins apply to positions open as of this date)
  • Effective Date: May 08, 2026 (enhanced margin requirements come into force)

Impact Assessment

The ST-ASM framework significantly increases the cost of holding or taking new positions in the affected securities. Stage I imposes a minimum 50% margin (up from standard levels), while Stage II mandates full 100% margin, effectively eliminating leverage for those scrips. This measure restricts speculative activity and can lead to increased selling pressure on affected securities. Market participants holding positions in Annexure I securities as of May 07, 2026 must ensure sufficient margin funds are available before market open on May 08, 2026 to avoid forced liquidation. The measure affects equity segment participants including retail traders, proprietary desks, and institutional investors holding the listed securities.

Impact Justification

Directly imposes elevated margin requirements (50%-100%) on specific securities from May 08, 2026, significantly affecting trading costs and positions for affected scrips under ST-ASM Stage I and Stage II.