The Long-term Additional Surveillance Measure (LT ASM) is a regulatory framework introduced by SEBI and Indian stock exchanges to monitor and manage risks in stocks that exhibit continuous abnormal trading patterns. This framework is designed to protect investors and enhance market integrity by imposing stricter trading conditions on selected securities for an extended period.
Criteria for Inclusion in LT ASM
Stocks are selected for the Long-term Additional Surveillance Measure (LT ASM) list based on objective criteria jointly defined by SEBI and the exchanges. These criteria include significant price swings (high-low and close-to-close variations over defined periods), abnormal trading volume fluctuations, high client concentration (such as the top 25 clients accounting for a large share of volume), differentiated market capitalization thresholds, low diversity among traders (few unique PANs), low delivery percentage, and extremely high or volatile price-earnings (PE) ratios.
Stages of LT ASM
LT ASM (Long-Term Additional Surveillance Measure) is applied in steps. As a stock moves through each step, trading restrictions become stricter to help control unusual price movements or speculation.
- Stage I: 100% margin requirement from T+3 days; price band may be reduced.
- Stage II: Further reduction in price band; continued 100% margin.
- Stage III: Additional price band reduction; continued 100% margin.
- Stage IV: Settlement on a gross basis (trade-to-trade), 100% margin, and a restrictive price band (e.g., 5%). For derivative stocks, new contracts are not issued, and existing contracts are settled as per expiry.
Here is the list of stocks that have been shortlisted in the Long-Term ASM Framework:
Stallion India Fluorochemicals Ltd
Stallion India Fluorochemicals Ltd is a Mumbai-based company that manufactures and supplies a range of industrial gases, particularly hydrofluorocarbons (HFCs) and hydrofluoroolefins (HFOs). Its primary business involves debunking (transferring gas from large to smaller containers), blending, and processing gases for applications in air conditioning, refrigeration, automotive, and healthcare, among others. On October 16th, the company was included in the LT-ASM stage IV Framework by the stock exchanges.
LKP Finance Ltd
LKP Finance Ltd is a Non-Banking Financial Company (NBFC) in India that engages in various financial services, including investments, trading in shares and securities, and derivatives. Its core businesses include equity broking, internet-based trading, demat services, and research. The company also offers other services like capital and debt market activities, retail debt market services, PF advisory, and distribution of financial products. On October 16th, the company was included in the LT-ASM stage IV Framework by the stock exchanges.
SVJ Enterprises Ltd
S. V. J. Enterprises Ltd. is an Indian company that is primarily involved in the manufacturing and trading of packaging products and agricultural items. It was converted from a private to a public limited company, and its product range includes disposable silver laminated plates, aluminum foil food containers, and various packaging pouches and bags. Initially, it was involved in the honey business before shifting its focus to the current product lines. On October 16th, the company was included in the LT-ASM stage I Framework by the stock exchanges.
Earthstahl & Alloys Ltd
Earthstahl & Alloys Ltd. is a manufacturing company specializing in the production of cast iron lumps and ductile iron pipe fittings. The company also produces high-end iron, steel, and non-ferrous castings for industries like pellet plants, cement plants, and the automobile sector, and its manufacturing unit is located in Duldula, Chhattisgarh. On October 16th, the company was included in the LT-ASM stage II Framework by the stock exchanges.
Jet Solar Ltd
Jet Solar Ltd., formerly Jet Infraventure Ltd., is an Indian real estate company specializing in the development of residential and commercial properties, with a focus on the states of Maharashtra and Gujarat. It was incorporated in 2001 and is headquartered in Mumbai, though the company is now diversifying into renewable energy, with a significant investment in its solar business. On October 16th, the company was included in the LT-ASM stage I Framework by the stock exchanges.
Written by Sridhar J
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