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 12, 2026.

Summary

BSE has notified the inclusion of certain securities under the Short Term Additional Surveillance Measure (ST-ASM) framework under Stage I and Stage II. Securities under ST-ASM Stage I will attract a minimum margin of 50% (capped at 100%), while those under ST-ASM Stage II will attract a margin of 100%, both effective May 12, 2026. The specific list of securities is provided in Annexure I attached to the circular.

Key Points

  • Securities satisfying ST-ASM Stage I criteria will have a minimum applicable margin of 50% or existing margin (whichever is higher), capped at 100%.
  • Securities satisfying ST-ASM Stage II criteria will have a minimum applicable margin of 100% or existing margin (whichever is higher), capped at 100%.
  • New margin rates apply to all open positions as on May 11, 2026 and all new positions from May 12, 2026.
  • The ASM framework operates in conjunction with all other prevailing surveillance measures imposed by the exchanges.
  • Inclusion under ASM is purely for market surveillance purposes and should not be construed as adverse action against the listed company or entity.
  • Upon exit from the framework, the price band of the scrip will be reinstated to the band applicable before shortlisting, provided the scrip is not under any other surveillance measure.

Regulatory Changes

This circular is issued further to earlier notices: 20240920-71 (Sep 20, 2024), 20181027-1 (Oct 27, 2018), 20190719-33 (Jul 19, 2019), 20201204-56 (Dec 4, 2020), 20230925-49 (Sep 25, 2023), and 20240920-63 (Sep 20, 2024), all pertaining to the revision of the ASM framework. The current notice applies updated shortlisting criteria within the existing revised ASM framework.

Compliance Requirements

  • Trading members must ensure that the enhanced margin requirements (50% for Stage I, 100% for Stage II) are collected from clients on all open and new positions in the listed securities from May 12, 2026.
  • Members should refer to the attached Annexure I for the full list of securities placed under ST-ASM Stage I and Stage II.
  • For clarifications, members may contact BSE Surveillance at bse.surv@bseindia.com.

Important Dates

  • May 8, 2026: Circular issuance date.
  • May 11, 2026: Reference date for existing open positions subject to new margin requirements.
  • May 12, 2026: Effective date for enhanced margin requirements under ST-ASM Stage I and Stage II.

Impact Assessment

The imposition of ST-ASM Stage I and Stage II margins significantly increases the cost of trading and holding positions in affected securities. A 50% margin requirement under Stage I and a 100% margin requirement under Stage II will constrain leveraged positions and may lead to forced liquidations for traders unable to meet the enhanced margin calls. This is likely to reduce liquidity and increase volatility in the affected scrips in the short term. The measure is designed to deter speculative activity and protect market integrity in securities exhibiting unusual price movements.

Impact Justification

Imposes significant margin hikes (50%-100%) on affected securities effective May 12, 2026, directly restricting trading activity and increasing cost of holding positions.