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 14, 2026.

Summary

BSE has notified the inclusion of securities under the Short Term Additional Surveillance Measure (ST-ASM) framework under Stage I and Stage II categories. 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 minimum margin of 100%, both effective May 14, 2026. The list of specific securities is provided in Annexure I attached to the notice.

Key Points

  • Securities satisfying ST-ASM Stage I criteria will attract a margin of 50% or existing margin, whichever is higher, capped at 100%
  • Securities satisfying ST-ASM Stage II criteria will attract a margin of 100% or existing margin, whichever is higher, capped at 100%
  • New margin rates apply to all open positions as on May 13, 2026 and all new positions from May 14, 2026
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Inclusion under ASM is purely for market surveillance purposes and should not be construed as adverse action against any company
  • Price band of securities moving out of the framework will be reinstated to the pre-ASM applicable price band, subject to no other surveillance measure being active

Regulatory Changes

This notice is issued further to prior Exchange notices revising the ASM framework: 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). No new framework changes are introduced; this is an application of the existing ST-ASM framework to newly qualifying securities.

Compliance Requirements

  • Trading members must ensure applicable margin rates are collected on open positions in the listed ST-ASM securities as on May 13, 2026
  • Members must apply revised margin rates to all new positions in ST-ASM securities from May 14, 2026
  • Members may contact bse.surv@bseindia.com for clarifications

Important Dates

  • May 12, 2026: Notice date; ST-ASM applicability announced
  • May 13, 2026: Reference date for existing open positions subject to new margin rates
  • May 14, 2026: Effective date for enhanced margin requirements under ST-ASM Stage I and Stage II

Impact Assessment

Traders and investors holding positions in securities listed under ST-ASM Stage I or Stage II will face significantly higher margin requirements, potentially forcing position reductions if margin calls cannot be met. ST-ASM Stage II securities face the maximum 100% margin, effectively requiring full cash cover for positions. This measure may reduce liquidity and increase volatility in the affected scrips. The inclusion does not reflect any fundamental adverse development at the company level but is driven by market surveillance criteria such as price movement anomalies.

Impact Justification

Directly imposes enhanced margin requirements (50%-100%) on specific securities effective May 14, 2026, affecting trader positions and liquidity.