NSE has announced changes to the Long-Term Additional Surveillance Measure (LTASM) framework effective May 11, 2026. Seven securities are being newly added to LTASM Stage I, one security is moving from Stage IV to Stage III, two securities are moving from Stage II to Stage I (downgrade), and three securities are being excluded from the ASM framework entirely.

Key Points

• 7 securities newly shortlisted under LTASM Framework Stage I w.e.f. May 11, 2026
• 2 securities (JAINAM, NAMOEWASTE) moved from Short-Term ASM (STASM) to LTASM framework
• No securities shortlisted for Stage IV, or for upward stage movements (Stage I→II, II→III, I→IV, II→IV, III→IV)
• ATLANTAELE moves down from Stage IV to Stage III
• ANONDITA and OMNI move down from Stage II to Stage I
• 3 securities excluded from ASM framework entirely, including NECLIFE and SVPGLOB which move to ESM framework

Regulatory Changes

• Securities placed under LTASM Stage IV are subject to shift from Rolling Settlement (Series: EQ) to Trade for Trade (Series: BE) on a T+3 basis per Criteria VII
• Securities moved from STASM to LTASM indicates escalation of surveillance concern
• Exclusions from ASM for NECLIFE and SVPGLOB are accompanied by migration to Enhanced Surveillance Measure (ESM) framework

Compliance Requirements

• Market participants and brokers must note revised settlement mechanisms for affected securities
• Additional margin requirements apply to securities under LTASM as per NSE surveillance guidelines
• Trading members should update client-facing disclosures for securities newly entering or changing stages within LTASM

Important Dates

• Effective Date: May 11, 2026 — all stage changes, additions, and exclusions take effect
• Circular Date: May 8, 2026

Impact Assessment

Newly added to LTASM Stage I (higher surveillance, margin requirements):

*Moved from STASM to LTASM framework

Stage downgrade (reduced surveillance intensity):

Excluded from ASM framework:

*Moved from LTASM to ESM framework. Securities entering LTASM face enhanced margin requirements and potential trading restrictions. Stage IV securities face Trade-for-Trade settlement, significantly impacting liquidity.