Additional Surveillance Measures (ASM)

Additional Surveillance Measures (ASM) introduced by SEBI

 

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.

 

 

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

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