Short-term Additional Surveillance Measure (ST ASM) is a regulatory framework by SEBI and Indian stock exchanges to monitor stocks showing sudden, abnormal trading patterns. It aims to protect investors and maintain market integrity by imposing temporary, stricter trading conditions on such volatile or speculative securities.
ST- ASM (Additional Surveillance Measure) Stage 1
When a stock is placed under Stage 1 of the ST-ASM framework:
- Up to 100% margin requirement: Margin requirements may increase to 100%, but can start from 50% or the prevailing level, depending on volatility and risk assessment by the exchange.
- No intraday leverage: Traders are not allowed to use margin or leverage for intraday trades in ST-ASM stocks. Only CNC (Cash and Carry) delivery trades are permitted.
- Shorter review period: ST-ASM stocks are typically reviewed weekly, and they may exit the framework after 5–15 trading days, based on compliance with risk criteria.
- Trading allowed: Buying and selling are still permitted, but with some restrictions, like no leverage, full or partial margin, and no intraday trading.
These rules are meant to control risky short-term trading in stocks that show sudden price jumps, unusual trading volumes, or trading dominated by a few investors. The goal is to protect regular investors and keep the stock market fair and stable.
Here is the list of stocks that have been shortlisted in the Short-Term ASM Framework Stage I:
Indian Energy Exchange Limited
Indian Energy Exchange (IEX) is a leading platform for electricity trading in India, providing a transparent and efficient marketplace for buyers and sellers of power. It facilitates energy trading across multiple segments, including renewable energy certificates and energy-saving certificates. On July 25th, Indian Energy Exchange Limited was included in the ST-ASM Framework by the stock exchanges.
Datamatics Global Services Ltd
Datamatics Global Services is an IT and business process management company offering digital transformation solutions, including automation, analytics, and cloud services, to clients across various industries worldwide. On July 25th, Datamatics Global Services Limited was included in the ST-ASM Framework by the stock exchanges.
ABans Enterprises Ltd
ABans Enterprises Ltd is a diversified company engaged in manufacturing and trading electrical products, real estate development, and hospitality services, with a strong presence primarily in Sri Lanka. On July 25th, Abans Enterprises Limited was included in the ST-ASM Framework by the stock exchanges.
Maestros Electronics & Telecommunications Systems Ltd
Maestros Electronics & Telecommunications Systems Ltd specializes in designing and manufacturing advanced electronic and telecommunication products, serving defense, aerospace, and commercial sectors with innovative solutions. On July 25th, Maestros Electronics & Telecommunications Systems Limited was included in the 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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