Description

BSE imposes Long Term Additional Surveillance Measures (LT-ASM) on select securities effective May 20-22, 2026, including 100% margins on open and new positions and lower price bands.

Summary

BSE has updated the Long Term Additional Surveillance Measure (LT-ASM) framework, imposing enhanced surveillance actions on select securities. Key actions include 100% margin requirements effective May 22, 2026, lower price bands effective May 20, 2026, movement of securities to higher LT-ASM stages, and transfer of certain securities out of the LT-ASM framework.

Key Points

  • 100% margins applicable from May 22, 2026 on all open positions as on May 21, 2026 and all new positions created from May 22, 2026 onwards
  • Securities moved to higher LT-ASM stages effective May 20, 2026 (Annexure I, Part B)
  • Lower Price Band applicable from May 20, 2026 for securities in Annexure I (Part A)
  • Certain securities to continue in LT-ASM but transferred to T / XT / MT / TS Group effective May 22, 2026 (Annexure I, Part D)
  • Securities moving out of LT-ASM framework effective May 20, 2026 listed in Annexure II
  • Consolidated list of all securities under the framework in Annexure III
  • Shortlisting is based on XBRL submissions by listed companies and is purely a surveillance action

Regulatory Changes

This notice is issued in reference to the revised LT-ASM framework under Exchange notice no. 20180321-46 (March 21, 2018) and subsequent notices, including the most recent revisions via:

  • Notice no. 20240809-46 dated August 09, 2024
  • Notice no. 20240920-63 dated September 20, 2024
  • Notice no. 20210604-41 dated June 04, 2021 (governing transfer to T/XT/MT/TS Group)

Compliance Requirements

  • Market participants must maintain 100% margins on all open and new positions in affected securities from May 22, 2026
  • Trading members must comply with lower price band restrictions from May 20, 2026
  • LT-ASM framework operates in conjunction with all other prevailing surveillance measures imposed by exchanges
  • Price band for securities exiting the framework will revert to the pre-shortlisting band, unless another surveillance measure applies
  • Clarifications can be directed to bse.surv@bseindia.com

Important Dates

  • May 20, 2026: Lower price band applicable; securities moved to higher LT-ASM stages; securities moved out of LT-ASM framework effective
  • May 21, 2026: Reference date for all open positions subject to 100% margin
  • May 22, 2026: 100% margin requirement effective on open positions and new positions; transfer of certain securities to T/XT/MT/TS Group

Impact Assessment

This circular has a high market impact on affected securities. The imposition of 100% margins significantly raises the cost of trading and holding positions, likely reducing liquidity and trading volumes in the shortlisted securities. The lower price band further restricts downside movement, creating asymmetric price discovery. Securities moved to higher LT-ASM stages face progressively stricter surveillance. Retail and institutional investors holding affected scrips will face increased margin calls. The action is framed as a surveillance measure and explicitly not an adverse finding against companies, though market perception may still be negative.

Impact Justification

Imposes 100% margin requirements and lower price bands on securities under LT-ASM framework, directly affecting trading costs and market access for affected scrips.