The Short-term Additional Surveillance Measure (ST ASM) is a framework implemented by SEBI and Indian stock exchanges to monitor stocks experiencing unusual or sudden trading activity. It aims to protect investors and maintain market stability by imposing temporary, stricter trading rules on highly volatile or speculative stocks.
ST-ASM (Additional Surveillance Measure) Stage 1
When a stock enters Stage 1 of the ST-ASM framework, exchanges increase margin requirements based on its volatility and risk, typically ranging from 50% to 100%. Intraday leveraged trading is restricted, and only Cash and Carry (CNC) delivery trades are allowed, requiring investors to pay the full purchase amount. Stocks in this stage are reviewed weekly and may be removed from the list after 5–15 trading days if they meet the exit criteria.
Trading is allowed under strict conditions: no leverage, higher margins, and no intraday trades. These measures help curb excessive speculation in volatile stocks and protect retail investors.
Criteria for Exclusion from ST ASM
A stock placed under the Short-term ASM (ST-ASM) framework remains there for 5 to 15 trading days before review. During this period, the exchange monitors for unusual trading activity, such as sudden price swings or concentrated investor activity.
If the stock no longer exhibits these risk factors, it may be moved to a lower stage or removed from the framework entirely. This ensures that only stocks showing ongoing volatility or abnormal patterns stay under ST-ASM, while stable stocks are released.
Here is the list of stocks that have been shortlisted in the Short-Term ASM Framework Stage 1:
Eimco Elecon (India) Limited
With a market capitalization of Rs. 1,142.89 crore, the shares of Eimco Elecon (India) Limited were currently trading at Rs. 1,981.30 per equity share. On October 9th, Eimco Elecon (India) was included in the ST-ASM Framework by the stock exchanges.
Eimco Elecon (India) Limited was established in 1974 to manufacture and market equipment for underground and opencast mines. It produces mining and construction machinery, including side dump loaders, load-haul-dumpers, and rock shovels, serving clients in India and abroad.
In October 2025, Ace investor Vijay Kishanlal Kedia bought a fresh stake of 1 percent in Eimco Elecon (India) Limited, valued at Rs. 11.38 crores, consisting of 57,441 shares.
Essar Shipping Limited
With a market capitalization of Rs. 645.77 crore, the shares of Essar Shipping Limited were currently trading at Rs. 31.20 per equity share. On October 9th, Essar Shipping was included in the ST-ASM Framework by the stock exchanges.
Essar Shipping Limited was originally established in 1945 and formally incorporated in 2010. The company provides integrated shipping, logistics, and oilfield services, operating a fleet of tankers, dry bulk carriers, and drilling rigs for global energy and commodity sectors.
California Software Company Limited
With a market capitalization of Rs. 114.63 crore, the shares of California Software Company Limited were currently trading at Rs. 18.54 per equity share. On October 9th, California Software Company was included in the ST-ASM Framework by the stock exchanges.
California Software Company Limited was established in 1992 to provide software development, product engineering, and enterprise solutions. It specialises in artificial intelligence, IoT, blockchain, cloud computing, and digital transformation services, serving global clients across industries like healthcare, manufacturing, finance, and retail.
Palred Technologies Limited
With a market capitalization of Rs. 89.25 crore, the shares of Palred Technologies Limited were currently trading at Rs. 72.96 per equity share. On October 9th, Palred Technologies was included in the ST-ASM Framework by the stock exchanges.
Palred Technologies Limited was established in 1999 and rebranded from Four Soft Limited to focus on consumer electronics. It designs and sells mobile accessories, audio products, and smart gadgets under the pTron brand, targeting tech-savvy users with affordable, innovative lifestyle electronics.
Aik Pipes & Polymers Limited
With a market capitalization of Rs. 32.64 crore, the shares of Aik Pipes & Polymers Limited were currently trading at Rs. 51.30 per equity share. On October 9th, Aik Pipes & Polymers was included in the ST-ASM Framework by the stock exchanges.
Aik Pipes & Polymers Limited was established in 2017 to manufacture high-density polyethylene (HDPE), medium-density polyethylene (MDPE), and polypropylene random (PPR) pipes. The company produces pipes for water distribution, gas transmission, sewerage systems, and telecom applications, and is committed to quality, innovation, and sustainable solutions.
Written By – Nikhil Naik
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