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 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. Following are the is the list of stocks that have been excluded from the ST-ASM Framework:
1. Mobikwik Systems Ltd
MobiKwik is a leading Indian digital wallet and payments platform that allows users to make online payments, recharge phones, pay bills, and transfer money. It provides both consumers and merchants with a seamless payment experience through its mobile wallet and various financial services. On September 16, Mobikwik Systems was excluded from the ST-ASM Framework by the stock exchanges.
2. Yatra Online Ltd
Yatra Online is one of India’s leading online travel agencies, offering a wide range of travel-related services such as hotel bookings, flight reservations, and holiday packages.
It aims to provide a convenient and comprehensive travel booking experience for both leisure and business travelers. On September 16, Yatra Online was excluded from the ST-ASM Framework by the stock exchanges.
3. Laxmi Finance Ltd
Laxmi Finance is a prominent financial services company based in India, primarily focused on providing loans and investment opportunities to individuals and businesses.
It offers a variety of products such as personal loans, business loans, and financial advisory services. On September 16, Laxmi Finance was excluded from the ST-ASM Framework by the stock exchanges.
4. JITF Infralogistics Ltd
JITF Infralogistics Limited is an India-based holding company in the O.P. Jindal Group, focused on infrastructure development and manufacturing. Its business operations, conducted through subsidiaries, include the development of urban and water infrastructure, the management of municipal solid waste for power generation, and the manufacturing of railway freight wagons. On September 16, JITF Infralogistics was excluded from the ST-ASM Framework by the stock exchanges.
5. Hemisphere Properties India Ltd
Hemisphere Properties India Ltd (HPIL) is a Central Public Sector Enterprise (CPSE) of the Government of India, formed to hold and manage surplus land from the disinvestment of VSNL (now Tata Communications).
The company’s primary activities involve acquiring, developing, constructing, and dealing with real estate, including commercial buildings, offices, and apartments. On September 16, Hemisphere Properties India was excluded from the ST-ASM Framework by the stock exchanges.
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.
Written by Sridhar J
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