The Short-term Additional Surveillance Measure (ST-ASM) is a regulatory mechanism introduced by SEBI and Indian stock exchanges to closely monitor stocks that exhibit unusual or sudden trading activity. Its primary goal is to safeguard investors and uphold market stability by applying temporary, tighter trading restrictions on highly volatile or speculative stocks.
Criteria for Inclusion in ST-ASM
Stocks are selected for the Short-term Additional Surveillance Measure (ST-ASM) list based on objective, market-based parameters jointly defined by SEBI and the exchanges. The main criteria include:
The criteria for inclusion in the Short-term Additional Surveillance Measure (ST-ASM) are based on sudden abnormal price movements, sharp volume fluctuations, high client concentration, limited trader diversity, and volatility over a short period (typically 5 to 15 days). These parameters help exchanges identify stocks showing speculative or unusual trading activity for temporary, stricter monitoring
Here is the list of stocks that have been excluded from the ST-ASM Framework:
Tilaknagar Industries Ltd
Tilaknagar Industries Ltd is an Indian company primarily engaged in the manufacturing and distribution of alcoholic beverages, especially Indian Made Foreign Liquor (IMFL). The company is known for its flagship brand, Mansion House. It operates across India and has a growing presence in overseas markets. On August 25, Tilaknagar Industries was excluded from the ST-ASM Framework by the stock exchanges.
KRBL Ltd
KRBL Ltd is one of the world’s largest exporters and millers of Basmati rice, known especially for its “India Gate” brand. The company has a strong global footprint, exporting to numerous countries. It is involved in the full value chain of rice production, from farming to branding. KRBL also diversifies into energy and agri-waste management. On August 25, KRBL was excluded from the ST-ASM Framework by the stock exchanges.
HBL Engineering Ltd
HBL Engineering Ltd is an Indian company specializing in the design and manufacture of specialized batteries and power electronics. It serves sectors like defense, railways, aviation, and telecom. Known for innovation in battery technology, HBL also works on renewable energy and electronics-based solutions. On August 25, HBL Engineering was excluded from the ST-ASM Framework by the stock exchanges.
Asian Hotels (North) Ltd
Asian Hotels (North) Ltd owns and operates luxury hotels in India, including the iconic Hyatt Regency Delhi. The company is part of a larger group that was restructured into regional hotel operations. It focuses on high-end hospitality services catering to business and leisure travelers. On August 25, Asian Hotels (North) was excluded from the ST-ASM Framework by the stock exchanges.
Criteria for Exclusion from ST-ASM
A stock may be considered for exit from the ST-ASM framework if it no longer meets the inclusion criteria. The process is as follows:
- Minimum Period: A stock must remain in the Short-term ASM (ST-ASM) framework for a minimum period, typically 5 or 15 trading days, depending on the stage, before it becomes eligible for review and possible exit.
- Stage-wise Review: Stocks are reviewed after completing the minimum period in each stage. The review assesses whether the stock still meets the entry criteria for ST-ASM, such as abnormal price movements or high client concentration.
- Exit Criteria: If, during the review, the stock no longer meets the inclusion criteria for its current stage, it is eligible to move to the next lower stage. A stock in Stage I that does not meet the criteria can be fully exited from the ST-ASM framework.
- Ongoing Monitoring: The process is dynamic, with regular reviews ensuring that only stocks displaying recent abnormal trading patterns remain under ST-ASM.
Written by Sridhar J
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