Description

BSE imposes 100% margins under the LT-ASM framework effective May 20, 2026, with securities moved to higher stages and some exiting the framework effective May 18, 2026.

Summary

BSE has issued a notice regarding the applicability of Long Term Additional Surveillance Measures (LT-ASM) under its revised framework. Securities listed in Annexure I (Part A) will attract 100% margins effective May 20, 2026. Securities in Annexure I (Part B) are being moved to higher stages of the LT-ASM framework, while securities in Annexure II are exiting the framework, both effective May 18, 2026. Securities in Annexure I (Part D) will be transferred to the T/XT/MT/TS Group while continuing under LT-ASM.

Key Points

  • 100% margins will be applicable from May 20, 2026 on all open positions as of May 19, 2026 and all new positions created from May 20, 2026 onwards
  • Securities in Annexure I (Part B) are being moved to higher stages within the LT-ASM framework effective May 18, 2026
  • Lower Price Band is applicable for these securities effective May 18, 2026
  • Securities in Annexure I (Part D) will continue in LT-ASM but be transferred to T/XT/MT/TS Group effective May 20, 2026
  • Securities in Annexure II are moving out of the LT-ASM framework effective May 18, 2026
  • A consolidated list of all securities under the framework is provided in Annexure III
  • Shortlisting is based on XBRL submissions by listed companies and is purely for market surveillance purposes

Regulatory Changes

This notice is issued under the revised LT-ASM framework established via Exchange notice no. 20180321-46 (March 21, 2018) and subsequently revised via:

  • Notice no. 20181027-1 (October 27, 2018)
  • Notice no. 20201204-56 (December 04, 2020)
  • Notice no. 20240809-46 (August 09, 2024)
  • Notice no. 20240920-63 (September 20, 2024)

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

Compliance Requirements

  • Market participants must maintain 100% margins on open positions in affected securities as of May 19, 2026
  • Members and traders must ensure compliance with the revised price bands applicable to shortlisted securities
  • For clarifications, members may contact BSE at bse.surv@bseindia.com
  • The price band for securities exiting the framework will be reinstated to the pre-shortlisting level, unless the security is under another surveillance measure

Important Dates

  • May 18, 2026: Securities moved to higher LT-ASM stages (Annexure I Part B) and lower price band applicable; securities moving out of LT-ASM framework (Annexure II) effective
  • May 19, 2026: Last date for open positions subject to 100% margin requirement
  • May 20, 2026: 100% margins applicable on all open and new positions in Annexure I (Part A) securities; transfer of Annexure I (Part D) securities to T/XT/MT/TS Group

Impact Assessment

This circular has a high market impact for traders and investors holding securities shortlisted under the LT-ASM framework. The mandatory 100% margin requirement significantly increases the cost of holding or creating positions in affected stocks, potentially reducing liquidity and increasing selling pressure. The movement of securities to higher LT-ASM stages further restricts trading via lower price bands, amplifying downside risk for existing holders. Securities exiting the framework may see improved sentiment and liquidity restoration, subject to no other surveillance measures being in place. The shortlisting is driven by XBRL data submissions and should not be interpreted as adverse regulatory action against the companies involved.

Impact Justification

Imposes 100% margin requirements on affected securities and restricts trading via lower price bands, directly impacting liquidity and position costs for market participants holding shortlisted stocks.