Description

BSE imposes Long Term Additional Surveillance Measures (LT-ASM) on select securities effective May 11-13, 2026, including 100% margin requirements, lower price bands, and framework stage movements.

Summary

BSE has issued a notice regarding the applicability of Long Term Additional Surveillance Measures (LT-ASM) on select securities. The notice covers new securities being placed under LT-ASM with 100% margin requirements, securities moving to higher LT-ASM stages, securities being transferred to T/XT/MT/TS groups, and securities moving out of the LT-ASM framework. Effective dates are May 11 and May 13, 2026.

Key Points

  • 100% margins will be applicable from May 13, 2026 on all open positions as on May 12, 2026 and new positions created from May 13, 2026 onwards (Annexure I, Part A)
  • Securities moving to higher LT-ASM stages are effective May 11, 2026 (Annexure I, Part B)
  • Lower Price Band shall be applicable from May 11, 2026 for securities in Annexure I (Part B)
  • Certain securities will continue in LT-ASM but be transferred to T/XT/MT/TS Group effective May 13, 2026 (Annexure I, Part D)
  • Securities moving out of LT-ASM framework are effective May 11, 2026 (Annexure II)
  • Consolidated list of all securities under the framework is available in Annexure III
  • LT-ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance and should not be construed as adverse action against the company

Regulatory Changes

This notice references and operates under the revised LT-ASM framework established through:

  • Exchange notice no. 20180321-46 dated March 21, 2018 (original framework)
  • Exchange notice no. 20181027-1 dated October 27, 2018
  • Exchange notice no. 20201204-56 dated December 04, 2020
  • Exchange notice no. 20240809-46 dated August 09, 2024
  • Exchange notice no. 20240920-63 dated September 20, 2024 (latest revision)
  • Exchange notice no. 20210604-41 dated June 04, 2021 (T/XT/MT/TS group transfer provisions)

Compliance Requirements

  • Market participants must ensure 100% margin compliance for affected securities from May 13, 2026
  • Members/brokers must inform clients about LT-ASM applicability on their holdings
  • Price band restrictions must be adhered to for securities under lower price band provisions
  • Shortlisting is based on XBRL submissions by listed companies; companies should ensure accurate XBRL filings
  • For clarifications, members may contact bse.surv@bseindia.com

Important Dates

  • May 11, 2026: Securities moving to higher LT-ASM stages become effective; lower price band applicable; securities moving out of LT-ASM framework effective
  • May 12, 2026: Reference date for open positions subject to 100% margin
  • May 13, 2026: 100% margins applicable on all open positions and new positions; securities transferred to T/XT/MT/TS Group effective

Impact Assessment

The LT-ASM framework significantly impacts trading in affected securities by requiring 100% margins, which substantially increases the cost of holding or creating positions. This reduces leverage and liquidity in these securities. The lower price band restriction further limits downside trading flexibility. Securities transferred to T/XT/MT/TS groups face group-specific trading restrictions. Market participants with existing positions in affected securities must arrange additional margin by May 13, 2026. The periodic review mechanism means securities can move between stages or exit the framework based on ongoing surveillance criteria.

Impact Justification

Imposes 100% margin requirements on affected securities and restricts price bands, directly impacting trading costs and liquidity for listed securities under LT-ASM framework.