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.
ST- ASM (Additional Surveillance Measure) Stage 1
When a stock is placed under Stage 1 of the ST-ASM framework:
- Up to 100% margin requirement: Margin requirements may increase to 100%, but can start from 50% or the prevailing level, depending on volatility and risk assessment by the exchange.
- No intraday leverage: Traders are not allowed to use margin or leverage for intraday trades in ST-ASM stocks. Only CNC (Cash and Carry) delivery trades are permitted.
- Shorter review period: ST-ASM stocks are typically reviewed weekly, and they may exit the framework after 5–15 trading days, based on compliance with risk criteria.
- Trading allowed: Buying and selling are still permitted, but with some restrictions, like no leverage, full or partial margin, and no intraday trading.
These rules are meant to control risky short-term trading in stocks that show sudden price jumps, unusual trading volumes, or trading dominated by a few investors. The goal is to protect regular investors and keep the stock market fair and stable.
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 shortlisted in the Short-Term ASM Framework:
Adani Power Ltd
Adani Power is one of India’s largest private thermal power producers and part of the Adani Group. It operates multiple power plants, and the company is involved in power generation using coal-based and renewable energy sources. It plays a key role in meeting the country’s growing electricity demand. On September 23rd, Adani Power was included in the ST-ASM Framework by the stock exchanges.
Adani Total Gas Ltd
Adani Total Gas, a joint venture between Adani Group and France’s TotalEnergies, is involved in the distribution of natural gas in India. It supplies compressed natural gas (CNG) for vehicles and piped natural gas (PNG) for households and industries. The company is expanding its city gas distribution network across several Indian states and focuses on cleaner energy alternatives. On September 23rd, Adani Total Gas was included in the ST-ASM Framework by the stock exchanges.
Emkay Global Financial Services Ltd
Emkay Global is a leading financial services firm in India, offering a range of services including equity research, investment banking, portfolio management, and institutional broking. The company is known for its in-depth market research and advisory services, and serves both retail and institutional clients in India and abroad. On September 23rd, Emkay Global Financial Services was included in the ST-ASM Framework by the stock exchanges.
John Cockerill Limited
John Cockerill is a Belgian engineering company that provides industrial solutions in energy, defence, environment, and steelmaking. It has a strong presence in India, especially in hydrogen technology, steel plant equipment, and green energy systems. The company focuses on sustainable industrial innovation and infrastructure development worldwide. On September 23rd, John Cockerill was included in the ST-ASM Framework by the stock exchanges.
Criteria for Exclusion from ST ASM
The process for exiting a stock from the Short-term ASM (ST ASM) framework begins after it has stayed in the framework for a minimum period, typically 5 to 15 trading days. During this time, the stock is reviewed to determine if it still meets the criteria for inclusion, such as abnormal price movements or high client concentration.
If it no longer meets the required conditions, it may be moved to a lower stage or fully exited from the ST ASM framework. Regular monitoring ensures that only stocks with abnormal trading patterns continue to remain under the framework.
Written by Sridhar J
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