The shares of this leading stock exchange fell over 6 percent on Wednesday after the stock had been placed under the ASM List. In this article, we will understand what ASM is exactly and how it has affected the exchange.
With a market capitalization of Rs 1,15,414 crores, the shares of BSE Ltd are currently trading at Rs 2,842 per share, down by 6.61 percent from its 52-week high of Rs 3,030 per share. Over the past five years, the stock has delivered a multibagger return of 6,516.84 percent.
On Wednesday, the BSE shares were kept under the Additional Surveillance Measure (ASM) framework by the exchange, as for a few days the stock has been seeing excessive volume and price spikes, triggering investor caution. In this list many other stocks are placed under ASM, such as Garden Reach Shipbuilders & Engineers, Cochin Shipyard, Data Patterns, and many more.
So, what is ASM exactly? ASM or Additional Surveillance Measure framework is a measure taken by the stock exchange to keep a close watch on the securities. Its purpose is to protect market integrity, manage volatility, and protect investors from unjustified speculation and unusual price changes.
When stocks demonstrate sharper price movements or a sudden increase in trading that is inconsistent with their underlying fundamentals, they are typically placed under More Surveillance Measures or the ASM if they have less than a 5 day surveillance. The ASM is designed to reduce speculation and give investors some protection.
Financial Highlights
BSE reported a consolidated revenue of Rs 3,212 crores in FY25, up 101.66 percent from Rs 1,592 crores in FY24. The company reported a net profit of Rs 1,322 crores in FY25, up 71.24 percent from Rs 772 crores in FY24.
BSE Limited provides a platform for trading in equities, currencies, debt, derivatives, mutual funds, and other securities on both domestic and international platforms. The company also offers services in clearing and settlement, data dissemination, depository, IT, training, and supervision of SEBI-registered investment advisers. BSE has a platform to support small and medium enterprises.
Written by Satyajeet Mukherjee
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