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 Stage I:
ASM Technologies Ltd
ASM Technologies Ltd is an Indian IT and engineering services company specializing in product engineering, digital transformation, and IT consulting. With a global presence, it serves clients in industries like automotive, aerospace, and manufacturing. The company offers solutions in areas such as cloud computing, embedded systems, and enterprise applications. On September 05, ASM Technologies was included in the LT-ASM Framework by the stock exchanges.
CarTrade Tech Ltd
CarTrade Tech Ltd operates a multi-channel automotive platform offering services for buying, selling, and financing new and used vehicles. It owns popular platforms like CarWale and BikeWale, which provide detailed listings, price comparisons, and vehicle reviews. The company also supports dealers and OEMs with auction platforms and vehicle inspection services. On September 05, CarTrade Tech was included in the LT-ASM Framework by the stock exchanges.
Astron Paper & Board Mill Ltd
Astron Paper & Board Mill Ltd is engaged in the manufacturing of kraft paper, mainly used for packaging. The company focuses on recycling waste paper to produce eco-friendly packaging materials. It serves the growing packaging industry, especially for industries like FMCG, textiles, and pharmaceuticals. On September 05, Astron Paper & Board Mill was included in the LT-ASM Framework by the stock exchanges.
Vantage Knowledge Academy Ltd
Vantage Knowledge Academy Ltd provides educational programs with a focus on finance, banking, and professional certifications. The institution aims to bridge the gap between academic knowledge and industry requirements. It offers training for global certifications like ACCA, CWM, and others. On September 05, Vantage Knowledge Academy was included in the LT-ASM Framework by the stock exchanges.
Disha Resources Ltd
Disha Resources Ltd is a diversified company with interests in trading, financial services, and possibly real estate. It has operated under various business models over time, including commodities trading and investment activities. The company is publicly listed and may generate revenue from financial instruments and consulting. On September 05, Disha Resources was included in the LT-ASM Framework by the stock exchanges.
Criteria for Exclusion from LT ASM
A stock can be excluded from the Long-Term ASM (Additional Surveillance Measure) list if it no longer meets the inclusion criteria. It must stay in the ASM for a minimum period (60–90 days), after which it’s reviewed weekly. If abnormal trading behavior is no longer observed, the stock may gradually exit the framework. For Stage IV stocks, no new derivative contracts are issued until exit, and existing ones continue until expiry.
Written by Sridhar J
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