The Short-term Additional Surveillance Measure (ST-ASM) is a regulatory system introduced by SEBI and stock exchanges to monitor stocks showing abnormal trading behavior. It places temporary, tighter trading restrictions on stocks experiencing sharp volatility or speculation, aiming to protect investors’ interests and maintain fairness and stability in the market.
ST- ASM (Additional Surveillance Measure) Stage 1
When a stock moves into Stage 1 of the ST-ASM framework, margin requirements are significantly increased, usually between 50 percent and 100 percent, depending on the stock’s volatility. During this period, intraday leveraged trading is restricted, and only CNC (Cash and Carry) delivery-based trades are permitted, requiring investors to pay the full trade value upfront.
Stocks placed under Stage 1 are reviewed every week and may be removed from the list within 5 to 15 trading days if their trading patterns stabilize. While trading continues, it remains subject to strict controls like higher margins, no leverage, and delivery-only transactions.
These measures are designed to reduce excessive speculation, curb erratic price swings, and protect retail investors, thereby promoting a more transparent and stable market environment.
Criteria for Exclusion from ST ASM
A stock listed under the Short-term Additional Surveillance Measure (ST-ASM) framework must stay there for 5 to 15 trading days before being reviewed. During this period, the stock exchange closely monitors its trading activity for signs of unusual price movements, excessive volatility, or concentrated trading among a few investors.
If the stock’s trading behavior returns to normal and the risks subside, it may be downgraded to a lower stage or completely removed from the ST-ASM list. This mechanism ensures that only highly volatile or speculative stocks remain under surveillance, while stable and consistent performers are promptly released from the framework to resume normal trading conditions.
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List of stocks that have been shortlisted in the Short-Term ASM Framework
1. Sammaan Capital Limited
With a market capitalization of Rs. 13,021.87 crore, the shares of Sammaan Capital Limited were currently trading at Rs. 157.70 per equity share. On October 3rd, Sammaan Capital was included in the ST-ASM Framework by the stock exchanges.
Sammaan Capital Limited was established in 2005 as Indiabulls Housing Finance and is engaged in providing home loans and loans against property, primarily serving the affordable housing segment with competitive interest rates and flexible repayment options across India
2. Cybertech Systems and Software Limited
With a market capitalization of Rs. 711.65 crore, the shares of Cybertech Systems & Software Limited were currently trading at Rs. 228.60 per equity share. On October 3rd, Cybertech Systems & Software was included in the ST-ASM Framework by the stock exchanges.
Cybertech Systems and Software Limited was established in 1995 and is engaged in providing enterprise cloud transformation, SAP digital solutions, and geospatial analytics services to clients across various industries globally.
3. Galaxy Medicare Limited
With a market capitalization of Rs. 35.96 crore, the shares of Galaxy Medicare Limited were currently trading at Rs. 23.70 per equity share. On October 3rd, Galaxy Medicare was included in the ST-ASM Framework by the stock exchanges.
Galaxy Medicare Limited was established in 1992 in Bhubaneswar and is engaged in manufacturing, trading, and exporting medical devices, surgical dressings, and Plaster of Paris (POP) bandages, serving hospitals, government departments, and international markets with quality wound care products.
4. RACL Geartech Limited
With a market capitalization of Rs. 1,381.80 crore, the shares of RACL Geartech Limited were currently trading at Rs. 1,175.25 per equity share. On October 3rd, RACL Geartech was included in the ST-ASM Framework by the stock exchanges.
RACL Geartech Limited was established in 1983 in New Delhi and is engaged in manufacturing precision-engineered gears and transmission components for automotive and industrial applications, serving global OEMs like BMW, KTM, and Kubota across motorcycles, passenger vehicles, and tractors.
5. Gayatri Sugars Limited
With a market capitalization of Rs. 88.45 crore, the shares of Gayatri Sugars Limited were currently trading at Rs. 13.65 per equity share. On October 3rd, Gayatri Sugars was included in the ST-ASM Framework by the stock exchanges.
Gayatri Sugars Limited was established in 1995 in Hyderabad and is engaged in manufacturing sugar, ethanol, and co-generating green power from bagasse, operating two integrated sugarcane processing units in Telangana with a combined crushing capacity of 7,000 tonnes per day.
Written By – Nikhil Naik
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