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:
Transformers & Rectifiers (India) Ltd
Transformers & Rectifiers (India) Ltd. (TARIL) is a leading Indian manufacturer of a wide range of transformers and reactors, with manufacturing facilities in Gujarat and a global customer base. The company produces power, distribution, furnace, and rectifier transformers, and has a presence in sectors including power, transmission, and industry. On November 11th, Transformers & Rectifiers (India) Ltd was included in Stage 1 of the ST-ASM Framework by the stock exchanges.
Concord Drugs Ltd
Concord Drugs Ltd is an India-based pharmaceutical company that manufactures and develops finished pharmaceutical formulations and ready-to-fill pellets. Established in 1995, the company operates a cGMP contract manufacturing facility, and its product line includes a range of dosage forms like tablets, capsules, syrups, and injectables. On November 12th, Concord Drugs Ltd was included in Stage 1 of the ST-ASM Framework by the stock exchanges.
Gallantt Ispat Ltd
Gallantt Ispat Ltd. is an integrated steel manufacturer in India that also operates in the power, agro, and real estate sectors. Its products include sponge iron, MS billets, and TMT bars, sold under the “Gallantt” brand. In recent years, the company has expanded into real estate with its first major housing project in Lucknow. On November 11th, Gallantt Ispat Ltd was included in Stage 1 of the ST-ASM Framework by the stock exchanges.
Gretex Corporate Services Ltd
Gretex Corporate Services Ltd is a SEBI-registered merchant banker that provides financial and consultancy services in capital markets, corporate finance, and restructuring. Established in 2008, the company focuses on helping small and medium-sized enterprises (SMEs) with fundraising through IPOs and other capital market instruments, and also offers services like debt syndication, valuation, and compliance advisory. On November 12th, Gretex Corporate Services Ltd was included in Stage 1 of the ST-ASM Framework by the stock exchanges.
Madhuveer Com 18 Network Ltd
Madhuveer Com 18 Network Ltd. is an Indian company that operates in the entertainment sector, focusing on producing, buying, and selling films, and event management. The company, which was originally founded as a pharmaceutical company called Toheal Pharmachem Limited in 1995, changed its name to Madhuveer Com 18 Network Ltd. On November 12th, Madhuveer Com 18 Network Ltd was included in Stage 1 of the ST-ASM Framework by the stock exchanges.
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.
Written by Sridhar J
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