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 20, 2026.

Summary

BSE has announced the applicability of Short Term Additional Surveillance Measure (ST-ASM) for select securities under Stage I and Stage II frameworks. Securities included under ST-ASM Stage I will attract a minimum margin of 50% (capped at 100%), while those under Stage II will attract 100% margin, both effective May 20, 2026.

Key Points

  • Securities satisfying criteria are included under ST-ASM Stage I with a minimum applicable margin of 50% or existing margin, whichever is higher (maximum capped at 100%)
  • Securities satisfying criteria are included under ST-ASM Stage II with a margin rate of 100% or existing margin, whichever is higher (maximum capped at 100%)
  • Margins apply to all open positions as on May 19, 2026, and all new positions created from May 20, 2026
  • ASM framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting under ASM is purely for market surveillance and is not an adverse action against the concerned company
  • On 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 further to previous ASM framework revision notices: 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). The current circular applies the established ST-ASM framework to a new set of securities as listed in Annexure I.

Compliance Requirements

  • Trading members must ensure the applicable margin rates (50% for Stage I, 100% for Stage II) are collected on all affected securities from May 20, 2026
  • Members must apply margins to open positions as of May 19, 2026, and all new positions from May 20, 2026
  • For clarifications, members may contact BSE Surveillance at bse.surv@bseindia.com

Important Dates

  • May 18, 2026: Notice date
  • May 19, 2026: Reference date for open positions subject to new margin requirements
  • May 20, 2026: Effective date for enhanced margin requirements under ST-ASM Stage I and Stage II

Impact Assessment

Traders and investors holding or seeking positions in securities listed under ST-ASM Stage I will face minimum 50% margin requirements, significantly increasing the cost of carrying positions. Those in Stage II securities will face the maximum 100% margin, effectively requiring full cash backing for all positions. This is likely to reduce liquidity and trading volumes in affected scrips. The list of affected securities is provided in Annexure I (attached to the original notice). Market participants should review the annexure to identify impacted holdings and adjust their margin accordingly before May 20, 2026.

Impact Justification

Mandatory margin hikes of up to 100% on specific securities effective May 20, 2026 directly impact trading costs and positions for affected scrips under ST-ASM Stage I and Stage II.