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:
Sambhv Steel Tubes Ltd
Sambhv Steel Tubes Ltd is an Indian manufacturer specializing in steel tubes and pipes. The company produces a wide range of mild steel (MS) and galvanized steel tubes used across sectors such as infrastructure, construction, agriculture, and industrial applications. On August 19, Sambhv Steel Tubes was excluded from the ST-ASM Framework by the stock exchanges.
Sarda Energy & Minerals Ltd
Sarda Energy & Minerals Ltd (SEML) is a vertically integrated steel and ferro alloys producer based in India. The company is engaged in the production of sponge iron, billets, ferro alloys, and power generation. It also has mining interests, particularly in coal and iron ore. On August 19, Sarda Energy & Minerals was excluded from the ST-ASM Framework by the stock exchanges.
Franklin Industries Ltd
Franklin Industries Ltd is a small-cap Indian company primarily engaged in trading and distribution of agricultural products such as grains and pulses. Over time, the company has diversified into other business segments, including consumer goods and financial services. Franklin Industries typically serves regional markets and focuses on scalable, asset-light business models. On August 19, Franklin Industries was excluded from the ST-ASM Framework by the stock exchanges.
Adcounty Media India Ltd
Adcounty Media India Ltd is a digital advertising and marketing company offering services in performance marketing, affiliate marketing, and programmatic advertising. It works with brands across various sectors to optimize online visibility, lead generation, and customer acquisition, and is known for leveraging data analytics and global traffic networks. On August 19, Adcounty Media India 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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