Description

BSE announces inclusion of securities under ST-ASM Stage I and Stage II, with enhanced margin requirements of 50% and 100% respectively, effective May 19, 2026.

Summary

BSE has announced the inclusion of certain securities under Short Term Additional Surveillance Measure (ST-ASM) Stage I and Stage II, pursuant to the revised ASM framework. Enhanced margin requirements will apply from May 19, 2026, affecting both open positions as on May 18, 2026 and new positions created thereafter. The specific securities are listed in Annexure I attached to the notice.

Key Points

  • Securities included under ST-ASM Stage I will attract a margin of 50% or existing margin, whichever is higher (capped at 100%)
  • Securities included under ST-ASM Stage II 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 18, 2026 and new positions from May 19, 2026
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting under ASM is a surveillance action and should not be construed as adverse action against the concerned company
  • Upon exit from the framework, the price band will be reinstated to the pre-ASM level, unless the scrip is under another surveillance measure

Regulatory Changes

This notice is issued further to prior exchange notices:

  • 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

No new framework changes are introduced; this notice applies the existing revised ASM framework to newly shortlisted securities.

Compliance Requirements

  • Trading members must ensure applicable margin rates are collected from clients for securities listed in Annexure I under ST-ASM Stage I (minimum 50%) and Stage II (100%) from May 19, 2026
  • Members must apply enhanced margins on all open positions existing as on May 18, 2026
  • Members may contact BSE Surveillance at bse.surv@bseindia.com for clarifications

Important Dates

  • May 15, 2026: Notice date and publication of ST-ASM applicability
  • May 18, 2026: Reference date for open positions subject to new margin requirements
  • May 19, 2026: Effective date for enhanced margin requirements under ST-ASM Stage I and Stage II

Impact Assessment

This circular has high market impact for traders holding or planning to trade in the shortlisted securities. The mandatory increase in margin to 50% (Stage I) or 100% (Stage II) significantly raises the cost of maintaining positions, potentially forcing liquidation of under-margined open positions before May 19, 2026. Retail and institutional participants in the affected scrips will need to arrange additional funds or reduce exposure. The measure is intended to curb unusual price movements and enhance market integrity, with no long-term structural change to the ASM framework itself.

Impact Justification

Directly imposes enhanced margin requirements (50%-100%) on specific securities effective May 19, 2026, materially affecting trading costs and open positions for market participants.