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:
Ola Electric Mobility Ltd
Ola Electric is an Indian electric vehicle manufacturer focusing on sustainable mobility solutions. It is a subsidiary of Ola, best known for its ride-hailing services. The company designs and manufactures electric scooters and plans to expand into electric cars and other eco-friendly transport solutions. On August 21st, Ola Electric Mobility was included in the ST-ASM Framework by the stock exchanges.
Southern Petrochemicals Industries Ltd
SPIC is a leading Indian company in the chemical industry, primarily engaged in the manufacturing of fertilizers, petrochemicals, and other industrial chemicals. It plays a key role in the agro-chemical and fertilizer sectors and has a significant presence in the southern region of India. On August 21st, Southern Petrochemicals Industries was included in the ST-ASM Framework by the stock exchanges.
Kingfa Science & Technology Ltd
Kingfa is a global leader in the production of engineering plastics and compounds. The company specializes in the manufacturing of high-performance materials used in automotive, electronics, and other industrial sectors. It has a significant footprint in both China and international markets. On August 21st, Kingfa Science & Technology Industries was included in the ST-ASM Framework by the stock exchanges.
Julien Agro Infratech Ltd
Julien Agro Infratech is an Indian company involved in the agriculture and infrastructure sectors. It focuses on the production of agricultural inputs like fertilizers and pesticides, while also providing infrastructure solutions for the farming and rural development sectors. The company aims to enhance agricultural productivity through innovative solutions. On August 21st, Julien Agro Infratech 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
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
