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.
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:
IB Infotech Enterprises Ltd
IB Infotech Enterprises Ltd is an IT services company providing software development, consulting, and technology solutions to businesses. It focuses on delivering customized IT solutions across various industries to enhance operational efficiency and innovation. On September 30th, IB Infotech Enterprises was included in the ST-ASM Framework by the stock exchanges.
Welcure Drugs & Pharmaceuticals Ltd
Welcure Drugs & Pharmaceuticals Ltd is engaged in manufacturing and marketing pharmaceutical formulations and active pharmaceutical ingredients (APIs). The company focuses on producing quality medicines that cater to diverse therapeutic areas, aiming to improve healthcare outcomes. On September 30th, Welcure Drugs & Pharmaceuticals was included in the ST-ASM Framework by the stock exchanges.
Uravi Defence and Technology Ltd
Uravi Defence and Technology Limited, formerly Uravi T and Wedge Lamps Limited, is a leading manufacturer of high-quality automotive lighting solutions under the brand UVAL. It serves both OEMs and aftermarket segments, offering products like stoplights, taillights, indicators, wedge lamps, halogens, and LED lamps. On September 30th, Uravi Defence and Technology was included in the ST-ASM Framework by the stock exchanges.
Banaras Beads Ltd
Banaras Beads Limited is recognized as an export house by the Government of India, is one of India’s largest manufacturers of glass beads, fashion jewelry, and accessories. The company supplies a wide range of handmade and machine-made beads to wholesalers, retailers, craft businesses, and online companies worldwide, exporting to many countries. On September 30th, Banaras Beads was included in the ST-ASM Framework by the stock exchanges.
Modern Engineering & Projects Ltd
Modern Engineering & Projects Ltd provides engineering and infrastructure services, including project management, construction, and fabrication solutions. The company serves industries such as oil & gas, power, and infrastructure development with a focus on delivering complex engineering projects efficiently. On September 30th, Modern Engineering & Projects 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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