The Short-term Additional Surveillance Measure (ST-ASM) is a regulatory mechanism introduced by SEBI and Indian stock exchanges to closely monitor stocks that exhibit unusual or sudden trading activity. Its primary goal is to safeguard investors and uphold market stability by applying temporary, tighter trading restrictions on highly volatile or speculative stocks.
Criteria for Exclusion from ST-ASM
A stock may be considered for exit from the ST-ASM framework if it no longer meets the inclusion criteria. The process is as follows:
- Minimum Period: A stock must remain in the Short-term ASM (ST-ASM) framework for a minimum period, typically 5 or 15 trading days, depending on the stage, before it becomes eligible for review and possible exit.
- Stage-wise Review: Stocks are reviewed after completing the minimum period in each stage. The review assesses whether the stock still meets the entry criteria for ST-ASM, such as abnormal price movements or high client concentration.
- Exit Criteria: If, during the review, the stock no longer meets the inclusion criteria for its current stage, it is eligible to move to the next lower stage. A stock in Stage I that does not meet the criteria can be fully exited from the ST-ASM framework.
- Ongoing Monitoring: The process is dynamic, with regular reviews ensuring that only stocks displaying recent abnormal trading patterns remain under ST-ASM.
Here is the list of stocks that have been recently excluded from the ST-ASM Framework:
Transformers & Rectifiers (India) Ltd
Transformers & Rectifiers (India) Ltd. (TARIL) is a leading Indian manufacturer of a wide range of transformers and reactors, with manufacturing facilities in Gujarat and a global customer base. The company produces power, distribution, furnace, and rectifier transformers, and has a presence in sectors including power, transmission, and industry.
On November 19, Transformers & Rectifiers (India) was excluded from the Stage 1 ST-ASM Framework by the stock exchanges.
Gallantt Ispat Ltd
Gallantt Ispat Ltd. is an integrated steel manufacturer in India that also operates in the power, agro, and real estate sectors. Its products include sponge iron, MS billets, and TMT bars, sold under the “Gallantt” brand. In recent years, the company has expanded into real estate with its first major housing project in Lucknow.
On November 19, Gallantt Ispat was excluded from the Stage 1 ST-ASM Framework by the stock exchanges.
Supertech EV Ltd
Supertech EV Ltd is an Indian company founded in 2010 that designs, manufactures, and distributes a range of electric vehicles, including e-rickshaws and e-scooters, with a focus on affordability and sustainability. Headquartered in Bahadurgarh, Haryana, it operates a nationwide network of dealerships and has a goal of making electric mobility accessible across India.
On November 20, Supertech EV was excluded from the Stage 1 ST-ASM Framework by the stock exchanges.
Madhuveer Com 18 Network Ltd
Madhuveer Com 18 Network Ltd. is an Indian company that operates in the entertainment sector, focusing on producing, buying, and selling films, and event management. The company, which was originally founded as a pharmaceutical company called Toheal Pharmachem Limited in 1995, changed its name to Madhuveer Com 18 Network Ltd.
On November 20, Madhuveer Com 18 Network was excluded from the Stage 1 ST-ASM Framework by the stock exchanges.
Shiv Texchem Ltd
Shiv Texchem Ltd is an India-based company established in 2005 that specialises in importing and distributing hydrocarbon-based chemicals for various industries like paints, coatings, pharmaceuticals, and agrochemicals. The company acts as a sourcing partner, importing a diverse range of chemicals from global suppliers and distributing them to over 650 domestic customers, including key players in the Indian chemical industry.
On November 20, Shiv Texchem was excluded from the Stage 1 ST-ASM Framework by the stock exchanges.
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
Written by Sridhar J
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