Additional Surveillance Measures (ASM) is a move introduced by the Securities and exchange Board of India (SEBI) to keep eyes on any abnormal rise in stock prices that is not appropriate with the financial health of companies.
Though Market has taken it as a fresh shock from the regulator’s side but its not new, it has been talked for last two years and the action taken by the Ministry of Corporate Affairs followed by SEBI, last year was the first clear indication of the intention of the Regulators that they are focusing on the abnormal activities going on the stock exchange portals and they are very keen to keep a check on many stocks which are moving in very suspicious manner.
Some high beta stocks which have given a tremendous upside or downside movement in past 1-2 years have been kept under ASM list.
Further, it is also important to understand that putting a stock under the ASM list itself does not certify that there is something wrong in the stock or there is any manipulation involved in the stock, it is only a surveillance measure proposed by the SEBI and to be undertaken by the stock exchange. Now Stock Exchanges need to look into the details of the trading activities happening under these stocks and try to understand the valid reason for such exceptional movement in the stock price.
Criterion of shortlisting stocks under Additional Surveillance Measures category
The shortlisting of securities for placing in ASM is based on an objective criteria as jointly decided by SEBI and Exchanges covering following parameters:
- High Low Variation
- Client Concentration
- of Price Band Hits
- Close to Close Price Variation
- PE ratio
The aforementioned criteria is dynamic in nature and subject to change from time to time.
The Bombay Stock Exchange (BSE) has shifted 109 stocks under enhanced surveillance measures where 100 per cent margins will be applicable from June 4, 2018
BSE has clarified that the shortlisting of securities under the ASM framework is purely on account of market surveillance, and it should not be construed as an adverse action against any particular company.
The stocks that follow simple criteria such as price volume spike is put under watch. Apart from that if a stock price is not justifying fundamentals it is put under ASM list.
The effect of the above action is visible in all concerned counters, volume in the stocks like Reliance Naval and Indiabulls Ventures and Jindal Worldwide falls drastically during past few sessions.
Surveillance actions applicable
The surveillance actions applicable for the shortlisted securities is as under:
- Securities shall be placed in Price Band of 5%
- Margins shall be levied at the rate of 100%
The securities which are placed under the ASM framework would be reviewed on bimonthly basis for the applicability of Additional Surveillance Measure.
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List of stocks placed under the ASM category
The list of stocks which are placed under the ASM category by the National Stock Exchange (NSE) is provided hereunder:
| Sr. No. | Symbol | Company Name | ISIN |
| 1 | ACE | Action Construction Equipment Limited | INE731H01025 |
| 2 | ALOKTEXT | Alok Industries Limited | INE270A01011 |
| 3 | AMTEKAUTO | Amtek Auto Limited | INE130C01021 |
| 4 | APEX | Apex Frozen Foods Limited | INE346W01013 |
| 5 | AUSTRAL | Austral Coke & Projects Limited | INE455J01027 |
| 6 | BEPL | Bhansali Engineering Polymers Limited | INE922A01025 |
| 7 | BILENERGY | Bil Energy Systems Limited | INE607L01029 |
| 8 | BOMDYEING | Bombay Dyeing & Mfg Company Limited | INE032A01023 |
| 9 | BRFL | Bombay Rayon Fashions Limited | INE589G01011 |
| 10 | BUTTERFLY | Butterfly Gandhimathi Appliances Limited | INE295F01017 |
| 11 | DBL | Dilip Buildcon Limited | INE917M01012 |
| 12 | DIAPOWER | Diamond Power Infra Ltd | INE989C01012 |
| 13 | EMAMIINFRA | Emami Infrastructure Limited | INE778K01012 |
| 14 | ESL | Electrosteel Steels Limited | INE481K01013 |
| 15 | EXCEL | Excel Realty N Infra Limited | INE688J01015 |
| 16 | EXCELINDUS | Excel Industries Limited | INE369A01029 |
| 17 | FCL | Fineotex Chemical Limited | INE045J01026 |
| 18 | GOACARBON | Goa Carbon Limited | INE426D01013 |
| 19 | GOLDINFRA | Goldstone Infratech Limited | INE260D01016 |
| 20 | GPIL | Godawari Power And Ispat limited | INE177H01013 |
| 21 | GRAPHITE | Graphite India Limited | INE371A01025 |
| 22 | GSS | GSS Infotech Limited | INE871H01011 |
| 23 | GTLINFRA | GTL Infrastructure Limited | INE221H01019 |
| 24 | GVKPIL | GVK Power & Infrastructure Limited | INE251H01024 |
| 25 | HEG | HEG Limited | INE545A01016 |
| 26 | HIL | HIL Limited | INE557A01011 |
| 27 | HINDDORROL | Hindustan Dorr-Oliver Limited | INE551A01022 |
| 28 | HSCL | Himadri Speciality Chemical Limited | INE019C01026 |
| 29 | IBULISL | Indiabulls Integrated Services Limited | INE126M01010 |
| 30 | IBVENTURES | Indiabulls Ventures Limited | INE274G01010 |
| 31 | INDIAGLYCO | India Glycols Limited | INE560A01015 |
| 32 | IVRCLINFRA | IVRCL Limited | INE875A01025 |
| 33 | JBFIND | JBF Industries Limited | INE187A01017 |
| 34 | JINDWORLD | Jindal Worldwide Limited | INE247D01021 |
| 35 | JPINFRATEC | Jaypee Infratech Limited | INE099J01015 |
| 36 | KDDL | KDDL Limited | INE291D01011 |
| 37 | KSERASERA | KSS Limited | INE216D01026 |
| 38 | KSK | KSK Energy Ventures Limited | INE143H01015 |
| 39 | KWALITY | kwality limited | INE775B01025 |
| 40 | LCCINFOTEC | LCC Infotech Limited | INE938A01021 |
| 41 | LSIL | Lloyds Steels Industries Limited | INE093R01011 |
| 42 | MANINDS | Man Industries (India) Limited | INE993A01026 |
| 43 | MIRCELECTR | MIRC Electronics Limited | INE831A01028 |
| 44 | MOHOTAIND | Mohota Industries Limited | INE313D01013 |
| 45 | OMKARCHEM | Omkar Speciality Chemicals Limited | INE474L01016 |
| 46 | OPTIEMUS | Optiemus Infracom Limited | INE350C01017 |
| 47 | PRAKASH | Prakash Industries Limited | INE603A01013 |
| 48 | RADICO | Radico Khaitan Limited | INE944F01028 |
| 49 | RAIN | Rain Industries Limited | INE855B01025 |
| 50 | RAMGOPOLY | Ramgopal Polytex Limited | INE410D01017 |
| 51 | RNAVAL | Reliance Naval and Engineering Limited | INE542F01012 |
| 52 | SANWARIA | Sanwaria Consumer Limited | INE890C01046 |
| 53 | SCAPDVR | Stampede Capital Limited | INE224E01036 |
| 54 | SRSLTD | SRS Limited | INE219H01039 |
| 55 | STAMPEDE | Stampede Capital Limited | INE224E01028 |
| 56 | STERLINBIO | Sterling Biotech Limited | INE324C01038 |
| 57 | SUNILHITEC | Sunil Hitech Engineers Limited | INE305H01028 |
| 58 | SUPREMEINF | Supreme Infrastructure India Limited | INE550H01011 |
| 59 | TALWALKARS | Talwalkars Better Value Fitness Limited | INE502K01016 |
| 60 | TFL | Transwarranty Finance Limited | INE804H01012 |
| 61 | TINPLATE | The Tinplate Company of India Limited | INE422C01014 |
| 62 | USHERAGRO | Usher Agro Limited | INE235G01011 |
| 63 | UVSL | Uttam Value Steels Limited | INE292A01023 |
| 64 | VENKEYS | Venky’s (India) Limited | INE398A01010 |
| 65 | VIJIFIN | Viji Finance Limited | INE159N01027 |
| 66 | VISESHINFO | Visesh Infotecnics Limited | INE861A01058 |
| 67 | WINDMACHIN | Windsor Machines Limited | INE052A01021 |
| 68 | ZENITHEXPO | Zenith Exports Limited |
Source: nseindia.com