The Long-term Additional Surveillance Measure (LT ASM) is a regulatory mechanism established by SEBI and Indian stock exchanges to oversee and mitigate risks in stocks showing persistent irregular trading behavior. It aims to safeguard investors and promote market stability by applying stricter trading rules to specific securities for an extended duration.
Criteria for Inclusion in LT ASM
Stocks are included in the Long-term Additional Surveillance Measure (LT ASM) list based on criteria set by SEBI and Indian stock exchanges. These include significant price volatility (high-low and close-to-close changes over specific periods), unusual trading volume spikes, high client concentration (e.g., top 25 clients dominating volume), varying market capitalization thresholds, limited trader diversity (few unique PANs), low delivery percentages, and exceptionally high or fluctuating price-earnings (PE) ratios.
Criteria for Exclusion from LT ASM
Stocks under the LT ASM framework are evaluated weekly and may exit if they no longer exhibit abnormal trading patterns. They must remain in the framework for a minimum period, typically 60 or 90 days, based on exchange rules, before qualifying for a phased exit.
For Stage IV stocks, no new derivative contracts are issued until exit, and existing contracts are settled per their expiry terms, ensuring a structured transition out of the LT ASM framework.
Here is the list of stocks that have been excluded from the LT-ASM Framework:
Cochin Shipyard Limited
With a market capitalization of Rs. 47,540.01 crore, the shares of Cochin Shipyard Limited were currently trading at Rs. 1,807.05 per equity share. On September 14th, Cochin Shipyard Limited was excluded from the LT-ASM Framework by the stock exchanges.
Cochin Shipyard Limited was established in 1972 as a government-owned company in Kochi, India. It builds and repairs ships, including large vessels up to 110,000 DWT. The company serves the Indian Navy, commercial shipping, and international clients, providing advanced shipbuilding and maintenance services. It is a key player in India’s maritime industry.
NDR Auto Components Limited
With a market capitalization of Rs. 2,697.25 crore, the shares of NDR Auto Components Limited were currently trading at Rs. 1,074.95 per equity share. On September 14th, NDR Auto Components Limited was excluded from the LT-ASM Framework by the stock exchanges.
NDR Auto Components Limited was established in 2019 as the flagship company of the Rohit Relan Group. It manufactures complete seating systems and key auto components for four-wheelers, two-wheelers, and surface transport segments. The company serves major clients like Maruti Suzuki India Limited and Suzuki Motorcycles, focusing on quality and innovation in automotive parts production.
Data Patterns (India) Limited
With a market capitalization of Rs. 15,182.85 crore, the shares of Data Patterns (India) Limited were currently trading at Rs. 2,712 per equity share. On September 14th, Data Patterns (India) Limited was excluded from the LT-ASM Framework by the stock exchanges.
Data Patterns (India) Limited was founded in 1998 and is a leading defence and aerospace electronics company based in Chennai. It designs, develops, and manufactures high-reliability electronic systems, including radars, electronic warfare, and communication systems. The company serves prestigious Indian defense projects and international clients with advanced, mission-critical solutions.
CCL Products (India) Limited
With a market capitalization of Rs. 12,060.91 crore, the shares of CCL Products (India) Limited were currently trading at Rs. 903.25 per equity share. On September 14th, CCL Products (India) Limited was excluded from the LT-ASM Framework by the stock exchanges.
CCL Products (India) Limited was established in 1994. It produces premium-quality instant coffee and exports to over 90 countries. The company is the largest exporter of instant coffee and a leading private label manufacturer globally. It operates with a focus on quality, innovation, and sustainability in coffee production.
BSE Limited
With a market capitalization of Rs. 90,506.07 crore, the shares of BSE Limited were currently trading at Rs. 2,225.50 per equity share. On September 14th, BSE Limited was excluded from the LT-ASM Framework by the stock exchanges.
BSE Limited was established in 1875 and is Asia’s oldest stock exchange, located in Mumbai. It offers a fully electronic trading platform with over 6,000 listed companies. BSE plays a vital role in India’s financial market by providing liquidity, efficient price discovery, and various securities trading, like equities, derivatives, and mutual funds.
Grand Continent Hotels Limited
With a market capitalization of Rs. 478.45 crore, the shares of Grand Continent Hotels Limited were currently trading at Rs. 192 per equity share. On September 14th, Grand Continent Hotels Limited was excluded from the LT-ASM Framework by the stock exchanges.
Grand Continent Hotels Limited was founded in 2011 and is a mid-scale hotel chain in India. It operates over 16 hotels with 753 rooms across major cities, focusing on upper-mid to economy segments. The company emphasizes comfort, convenience, and luxury for business and leisure travelers with modern amenities and excellent service.
Written By – Nikhil Naik
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