Description

BSE imposes 100% margins under the LT-ASM framework on select securities effective May 18, 2026, and updates the list of securities moving to higher stages or exiting the framework.

Summary

BSE has announced the applicability of Long Term Additional Surveillance Measures (LT-ASM) on select securities, effective May 18, 2026. The notice covers new securities being placed under 100% margin requirements, securities moving to higher stages of the LT-ASM framework, and securities being moved out of the framework. The full lists are provided as annexures to the notice.

Key Points

  • 100% margins will be applicable from May 18, 2026 on all open positions as on May 15, 2026 and all new positions created from May 18, 2026 onwards (Annexure I, Part A)
  • Securities moving to higher stages of LT-ASM framework will be subject to revised conditions effective May 14, 2026 (Annexure I, Part B)
  • Lower Price Band will be applicable for certain securities from May 14, 2026
  • Securities in Part D will continue in LT-ASM but will be transferred to T / XT / MT / TS Group effective May 18, 2026
  • Securities moving out of the LT-ASM framework are listed in Annexure II, effective May 14, 2026
  • A consolidated list of all securities currently under the framework is provided as Annexure III
  • Shortlisting is based on XBRL submissions by listed companies and is purely for market surveillance purposes

Regulatory Changes

This notice references and is issued under the revised LT-ASM framework established through multiple prior BSE notices:

  • 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)

The LT-ASM framework operates in conjunction with all other prevailing surveillance measures imposed by the exchanges.

Compliance Requirements

  • Market participants must ensure 100% margins are maintained on open positions in affected securities from May 18, 2026
  • Members with queries or clarifications may contact BSE at bse.surv@bseindia.com
  • Securities moving out of LT-ASM will have their price bands reinstated to pre-shortlisting levels, unless subject to another surveillance measure
  • The shortlisting should not be construed as adverse action against the concerned company or entity

Important Dates

  • May 13, 2026: Notice date
  • May 14, 2026: Effective date for securities moving to higher LT-ASM stages (Annexure I, Part B) and lower price band applicability; effective date for securities moving out of LT-ASM (Annexure II)
  • May 15, 2026: Reference date for open positions subject to 100% margin requirement
  • May 18, 2026: Effective date for 100% margin requirement on open and new positions (Annexure I, Part A); effective date for transfer of Part D securities to T/XT/MT/TS Group

Impact Assessment

This circular has a high market impact as it imposes 100% margin requirements on affected securities, significantly increasing the cost of holding or creating positions in those scrips. Traders and investors in shortlisted securities will need to arrange additional capital to maintain or initiate positions. Securities moving to higher LT-ASM stages face stricter surveillance conditions, which may reduce liquidity and increase volatility. Conversely, securities exiting the framework will see their price bands reinstated, potentially increasing trading flexibility. The measure is a standard surveillance tool and does not reflect on company fundamentals, though market sentiment may still be adversely affected for shortlisted securities.

Impact Justification

Imposes 100% margin requirements on securities under LT-ASM, directly affecting trading costs and positions for market participants from May 18, 2026.