Short-term Additional Surveillance Measure (ST-ASM) is a regulatory framework by SEBI and Indian stock exchanges to monitor stocks showing sudden, abnormal trading patterns. It aims to protect investors and maintain market integrity by imposing temporary, stricter trading conditions on such volatile or speculative securities.
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
Neuland Laboratories Limited
Neuland Laboratories Limited is an Indian pharmaceutical company specializing in manufacturing and developing active pharmaceutical ingredients (APIs), and it serves both domestic and international markets. The company operates through two verticals: generic drug substances and custom manufacturing solutions. On July 24th, Neuland Laboratories was excluded from the ST-ASM Framework by the stock exchanges.
Rajoo Engineers Limited
Rajoo Engineers Limited is an Indian company that manufactures and supplies plastic processing machinery, including extrusion lines, extrusion blow molding, and injection molding machines. It primarily serves sectors like packaging, automotive, and consumer products with innovative plastic processing technologies. On July 24th, Rajoo Engineers was excluded from the ST-ASM Framework by the stock exchanges.
Sterlite Technologies Limited
Sterlite Technologies Limited (STL) is a global optical and digital technology company headquartered in Pune, India. It designs and manufactures optical fibers, fiber optic cables, specialty cables, and telecom products. STL provides solutions for 5G, rural broadband, enterprise networks, and data centers, operating in numerous countries. On July 24th, Sterlite Technologies was excluded from the ST-ASM Framework by the stock exchanges.
B.R.Goyal Infrastructure Ltd
B. R. Goyal Infrastructure is an EPC contractor specializing in roads, highways, bridges, buildings, HAM projects, RMC production, and wind‑power generation. It operates across multiple Indian states and holds a diversified portfolio with strong government contracts. On July 24th, B.R.Goyal Infrastructure 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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