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:
Brightcom Group Ltd
Brightcom Group is a digital marketing and ad tech company that provides online advertising solutions through programmatic media buying, data analytics, and digital content. It operates globally with a strong presence in the U.S., Europe, and Asia. The company caters to both publishers and advertisers, helping them monetize and optimize digital content. On August 06, Brightcom Group was excluded from the ST-ASM Framework by the stock exchanges.
Jaiprakash Power Ventures Ltd
Jaiprakash Power Ventures is part of the Jaypee Group and operates in the energy sector, primarily focused on thermal and hydroelectric power generation in India. It owns and operates several large power plants, including the Jaypee Bina Thermal Power Plant and the Jaypee Hydro Power Plant. On August 06, Jaiprakash Power Ventures was excluded from the ST-ASM Framework by the stock exchanges.
Prime Focus Ltd
Prime Focus is a global leader in media and entertainment services, offering services like visual effects (VFX), post-production, and stereo 3D conversion. The company serves major Hollywood studios and global content creators through its subsidiary DNEG, and it is known for its work on blockbuster movies and TV shows. On August 06, Prime Focus was excluded from the ST-ASM Framework by the stock exchanges.
The Phosphate Company Ltd
The Phosphate Company Limited is engaged in the manufacturing and marketing of fertilizers, primarily Single Super Phosphate (SSP), which is widely used in Indian agriculture. It supports the agricultural sector by enhancing soil fertility and crop yield, and the company operates mainly in the eastern parts of India. On August 06, The Phosphate Company 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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