Synopis: Several Indian stocks, including Sasken Technologies, Aditya Infotech (CP Plus), Venus Remedies, Black Box, Shree Refrigerations, and Wockhardt, have been placed under SEBI’s Long-Term ASM framework due to abnormal price and trading patterns.
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 capitalisation thresholds, low diversity among traders (few unique PANs), low delivery percentage, and extremely high or volatile price-earnings (PE) ratios. Here is the list of stocks that have been recently shortlisted in the Long-Term ASM Framework:
Sasken Technologies Ltd
Sasken Technologies is a Bengaluru-based engineering R&D services company focused on product engineering and digital transformation. It serves industries such as automotive, telecom, semiconductors, and consumer electronics. The company provides embedded systems development, software solutions, hardware design, and IoT services to global OEMs and technology firms. On June 3rd, Sasken Technologies was included in the LT-ASM Framework by the stock exchanges.
Aditya Infotech Ltd
Aditya Infotech is an Indian security and surveillance solutions company best known for its “CP Plus” brand. It manufactures and distributes CCTV cameras, IP-based surveillance systems, and security monitoring equipment. The company caters to residential, commercial, and government sectors, offering integrated security solutions across India and international markets. On June 3rd, Aditya Infotech was included in the LT-ASM Framework by the stock exchanges.
Venus Remedies Ltd
Venus Remedies is a pharmaceutical company specialising in injectables and critical care medicines. It focuses on therapeutic areas like oncology, anti-infectives, and pain management. The company has a strong global presence with exports to multiple countries and also engages in research-driven drug development and formulation manufacturing. On June 4th, Venus Remedies was included in the LT-ASM Framework by the stock exchanges.
Black Box Ltd
Black Box Ltd is a global technology solutions provider specializing in digital infrastructure, networking, and IT systems integration. It helps enterprises design, build, and manage secure IT environments, including data centers, cloud connectivity, and cybersecurity solutions. The company serves clients across telecom, banking, government, and large enterprise sectors worldwide. On June 4th, Black Box was included in the LT-ASM Framework by the stock exchanges.
Shree Refrigerations Ltd
Shree Refrigerations Ltd is an Indian engineering company engaged in designing and manufacturing industrial refrigeration systems. It provides cooling solutions for industries like pharmaceuticals, food processing, dairy, and chemicals. The company focuses on customized refrigeration equipment, cold storage systems, and energy-efficient cooling technologies for industrial applications. On June 4th, Shree Refrigerations was included in the LT-ASM Framework by the stock exchanges
Wockhardt Ltd
Wockhardt Ltd is a research-driven pharmaceutical and biotechnology company. It develops and manufactures formulations, injectables, and vaccines, with a strong presence in antibiotics and critical care medicines. The company operates globally, including regulated markets like the US and Europe, and focuses on innovation, biosimilars, and healthcare solutions. On June 2nd, Wockhardt was included in the LT-ASM Framework by the stock exchanges
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.
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