Description

BSE imposes 100% margins under LT-ASM framework effective May 11, 2026, with securities moving to higher stages and some exiting the framework effective May 7, 2026.

Summary

BSE has issued a notice (No. 20260506-28) updating the Long Term Additional Surveillance Measure (LT-ASM) framework. Effective May 11, 2026, 100% margins will be applicable on all open positions as of May 8, 2026 and all new positions created thereafter. Additionally, certain securities are being moved to higher LT-ASM stages and a lower price band is being applied from May 7, 2026. Some securities are also being transferred to the T/XT/MT/TS group while remaining in LT-ASM, and others are exiting the framework entirely.

Key Points

  • 100% margin requirement imposed on securities listed in Annexure I (Part A) w.e.f. May 11, 2026
  • Margin applies to all open positions as on May 8, 2026 and all new positions from May 11, 2026
  • Securities escalated to higher LT-ASM stages (Annexure I Part B) effective May 7, 2026
  • Lower Price Band applicable from May 7, 2026 for securities in escalated stages
  • Certain securities (Annexure I Part D) continue under LT-ASM but transferred to T/XT/MT/TS Group w.e.f. May 11, 2026
  • Securities exiting LT-ASM framework listed in Annexure II, effective May 7, 2026
  • Consolidated list of all securities under the framework provided in Annexure III
  • Shortlisting is purely for market surveillance and should not be construed as adverse action against the company

Regulatory Changes

This notice updates the LT-ASM framework originally established via notice 20180321-46 (March 21, 2018) and subsequently revised through notices dated October 27, 2018, December 4, 2020, August 9, 2024, and September 20, 2024. The current notice applies stage escalations, margin imposition, and framework exits as part of the periodic review cycle.

Compliance Requirements

  • Members/Brokers: Must ensure 100% margins are collected on positions in LT-ASM securities (Annexure I Part A) for open positions as of May 8, 2026 and all new positions from May 11, 2026
  • Market Participants: Must comply with the lower price band restrictions effective May 7, 2026 for escalated securities
  • Listed Companies: Note that shortlisting is based on XBRL submissions; ensure timely and accurate XBRL filings to avoid surveillance action
  • LT-ASM framework operates in conjunction with all other prevailing surveillance measures imposed by exchanges
  • For clarifications, members may write to bse.surv@bseindia.com

Important Dates

  • May 6, 2026: Notice date
  • May 7, 2026: Effective date for stage escalations (Annexure I Part B), lower price band, and securities exiting LT-ASM (Annexure II)
  • May 8, 2026: Reference date for identifying open positions subject to 100% margin
  • May 11, 2026: Effective date for 100% margin requirement on open positions and new positions; also effective date for transfer of securities to T/XT/MT/TS Group (Annexure I Part D)

Impact Assessment

High impact on trading activity for affected securities. The 100% margin requirement significantly increases the cost of holding or creating positions in LT-ASM securities, likely leading to reduced liquidity and forced position closures for leveraged traders. Stage escalations impose progressively stricter conditions, while the lower price band limits downside movement but may also restrict price discovery. The transfer of certain securities to T/XT/MT/TS groups changes their trading segment, affecting settlement and eligibility. Securities exiting the framework will have their original price bands reinstated (unless subject to another surveillance measure), potentially restoring normal trading conditions. Market participants holding positions in affected scrips must reassess margin requirements before May 11, 2026.

Impact Justification

Imposes 100% margin requirements affecting open and new positions across multiple listed securities, with stage escalations and lower price bands — directly restricting trading conditions for affected scrips.