Description

BSE announces inclusion of securities under ST-ASM Stage I (50% margin) and Stage II (100% margin) effective May 18, 2026, applicable to open positions as on May 15, 2026 and new positions thereafter.

Summary

BSE has announced the inclusion of securities under Short Term Additional Surveillance Measure (ST-ASM) Stage I and Stage II. Securities under Stage I will attract a minimum margin of 50% (capped at 100%), while securities under Stage II will attract a minimum margin of 100%. Both measures are effective from May 18, 2026, applying to open positions as on May 15, 2026 and all new positions created from May 18, 2026.

Key Points

  • Securities satisfying ST-ASM Stage I criteria will face a minimum applicable margin of 50% or existing margin, whichever is higher (maximum capped at 100%)
  • Securities satisfying ST-ASM Stage II criteria will face a minimum applicable margin of 100% or existing margin, whichever is higher (maximum capped at 100%)
  • The specific list of affected securities is provided in Annexure I attached to the notice
  • ASM framework operates in conjunction with all other prevailing surveillance measures imposed by exchanges
  • Shortlisting under ASM is purely for market surveillance purposes and should not be construed as an adverse action against the concerned company/entity
  • Price band of a scrip moving out of the framework will be reinstated to the price band applicable before shortlisting, subject to no other surveillance measure being in effect

Regulatory Changes

This notice is issued further to the following earlier notices revising the ASM framework:

  • Notice No. 20240920-71 dated September 20, 2024
  • Notice No. 20181027-1 dated October 27, 2018
  • Notice No. 20190719-33 dated July 19, 2019
  • Notice No. 20201204-56 dated December 4, 2020
  • Notice No. 20230925-49 dated September 25, 2023
  • Notice No. 20240920-63 dated September 20, 2024

Compliance Requirements

  • Members/brokers must ensure that applicable margin rates (50% for Stage I, 100% for Stage II) are collected on all open positions in affected securities as on May 15, 2026
  • Applicable margins must be enforced on all new positions created from May 18, 2026
  • Members may contact BSE Surveillance at bse.surv@bseindia.com for any clarifications

Important Dates

  • May 14, 2026: Notice date; securities identified for ST-ASM inclusion
  • May 15, 2026: Reference date for open positions subject to new margin requirements
  • May 18, 2026: Effective date for new margin rates (Stage I: 50%; Stage II: 100%)

Impact Assessment

This circular significantly impacts trading in the shortlisted securities by mandating elevated margin requirements. Stage II securities face the maximum possible margin burden of 100%, effectively requiring traders to fully fund positions without leverage. This constrains speculative activity, reduces liquidity, and increases the cost of holding positions in affected scrips. The measure is triggered by surveillance criteria (likely related to price volatility, volume anomalies, or other risk indicators) and is consistent with BSE’s ongoing market integrity framework. Market participants with existing positions in affected securities must arrange additional margin by May 15, 2026 to avoid margin shortfall penalties.

Impact Justification

Imposes mandatory margin increases of 50%-100% on affected securities, directly constraining trading activity and increasing cost of positions for market participants.