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.
1. Coffee Day Enterprises Ltd
Coffee Day Enterprises Ltd is an Indian conglomerate primarily known for its Coffee Day brand. It operates in the coffee retail business through its Café Coffee Day chain, alongside other ventures in logistics, technology parks, and financial services.
It is one of India’s largest coffee retailers. On September 1st, Coffee Day Enterprises was included in the ST-ASM Framework by the stock exchanges.
2. Rishabh Instruments Ltd
Rishabh Instruments Ltd is an Indian company specializing in manufacturing and supplying industrial instruments and automation solutions. The company’s products include digital multimeters, process control instruments, and test and measuring equipment for various industries such as manufacturing, energy, and automation. On September 1st, Rishabh Instruments was included in the ST-ASM Framework by the stock exchanges.
3. Royal Orchid Hotels Ltd
Royal Orchid Hotels Ltd is a prominent hotel chain in India, offering hospitality services across major cities. The company operates luxury and budget hotels, resorts, and business-class hotels under various brands, including Royal Orchid and Royal Orchid Central. On September 1st, Royal Orchid Hotels was included in the ST-ASM Framework by the stock exchanges.
4. Shree Rama Multi-Tech Ltd
Shree Rama Multi-Tech Ltd is an Indian company engaged in the manufacturing of flexible packaging and related products. They cater to industries like food, pharmaceuticals, and personal care, providing innovative packaging solutions with a focus on sustainability and quality. On September 1st, Shree Rama Multi-Tech was included in the ST-ASM Framework by the stock exchanges.
5. Ovobel Foods Ltd
Ovobel Foods Ltd specializes in processing and distributing a range of egg products, including liquid and powdered forms, which serve as ingredients in the food and beverage industry.
They are known for high-quality processed eggs like whole egg powder and frozen liquid eggs, supplying them to various sectors. On September 1st, Ovobel Foods was included in the ST-ASM Framework by the stock exchanges.
Criteria for Exclusion from ST ASM
The process for exiting a stock from the Short-term ASM (ST ASM) framework begins after it has stayed in the framework for a minimum period, typically 5 to 15 trading days. During this time, the stock is reviewed to determine if it still meets the criteria for inclusion, such as abnormal price movements or high client concentration.
If it no longer meets the required conditions, it may be moved to a lower stage or fully exited from the ST ASM framework. Regular monitoring ensures that only stocks with abnormal trading patterns continue to remain under the framework.
Written by Sridhar J
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