The Short-term Additional Surveillance Measure (ST-ASM) is a monitoring framework introduced by SEBI and stock exchanges to identify stocks showing unusual trading behavior. It applies temporary, stricter trading restrictions on highly volatile or speculative counters, with the objective of protecting investors and maintaining market stability.
ST- ASM (Additional Surveillance Measure) Stage 1
When a stock is placed under Stage 1 of the ST-ASM framework, margin requirements are tightened significantly, ranging between 50% and 100% depending on its volatility. At this stage, intraday leveraged trading is prohibited, and only Cash and Carry (CNC) delivery-based trades are permitted, with investors required to make full upfront payment.
Stocks under Stage 1 are reviewed on a weekly basis and may be removed from the list if market conditions stabilize, usually within 5–15 trading sessions. While trading remains allowed, it comes with restrictions such as higher margins, no leverage, and delivery-only settlement.
These regulations are designed to curb excessive speculation, stabilize abnormal price swings, and create a fair trading environment. By reinforcing stricter rules, the framework protects retail investors and enhances the overall integrity of the market.
Exclusion Criteria
A stock brought under the Short-term ASM (ST-ASM) framework is required to remain there for a minimum of 5 to 15 trading days before being reviewed. During this period, the exchange closely tracks unusual activity such as sudden price fluctuations or trading patterns concentrated among a limited number of participants.
If the stock no longer displays such risks, it can either be shifted to a lower stage or excluded from the framework altogether. This mechanism ensures that only stocks exhibiting volatility or speculative behavior stay under ST-ASM, while relatively stable counters are released from restrictions.
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List of securities included in Short Term ASM Framework Stage as on September 27:
1. Tata Investment Corporation
A financial company that invests money in a variety of industries for the long term. It helps grow businesses by buying shares and managing investments across sectors like banking, technology, and manufacturing. With a market capitalisation of Rs. 44,539.40 crores, rose to Rs. 8,916, hitting high of up to 6.5 percent from its previous closing price of Rs. 8,372.
2. HP Telecom India
Distributes mobile phones, accessories, and electronics, owning exclusive rights for popular brands like Apple in certain Indian states. It connects tech brands with customers through its strong distribution network across regions. With a market capitalisation of Rs. 316.69 crores, rose to Rs. 266.10, hitting high of up to 5 percent from its previous closing price of Rs. 253.45.
3. Sharp Chucks and Machines
Manufactures forged, cast, and machined metal parts mainly for tractors and vehicles. They supply high-quality machine tool accessories like drill chucks and lathe chucks to industries requiring precision components. With a market capitalisation of Rs. 126.61 crores, fell to Rs. 110, hitting low of up to 2.4 percent from its previous closing price of Rs. 112.70.
4. Aaradhya Disposal Industries
Makes eco-friendly paper products used in packaging and food service. They emphasize sustainability with biodegradable coatings and operate modern factories that serve customers in India and abroad. With a market capitalisation of Rs. 222.5 crores, fell to Rs. 157.40, hitting low of up to 1.5 percent from its previous closing price of Rs. 159.80.
5. Sacheta Metals
Sacheta Metals is a manufacturer and exporter of aluminum, stainless steel, and mild steel kitchenware and houseware products. They make items like utensils, sheets, foils, and non-stick cookware, focusing on quality and hygiene for cooking needs.
With a market capitalisation of Rs. 63.38 crores, fell to Rs. 4.56, hitting low of up to 13.5 percent from its previous closing price of Rs. 5.27.
Written By Fazal Ul Vahab C H
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