List of Stocks Under ASM

26 September 2022
6 mins read
The ASM listed stocks are a collection of closely monitored securities for any unexpected price movement. Investors should extensively research ASM stocks before investing in them.
List of Stocks Under ASM

To enhance market integrity and safeguard investors’ interest, SEBI and Exchanges have been introducing several surveillance measures from time to time. Some of these pre-emptive measures include periodic call auctions, reduction in the price band, GSM, ASM, and transfer of securities to the Trade for Trade segment.

Today, we will be talking about Additional Surveillance Measures (ASM)—a surveillance measure introduced in 2018 to ensure a fairer and safer market environment.

ASM: Meaning

Additional Surveillance Measures (ASM) are specific limitations that are imposed on stocks experiencing high price fluctuations that are uncharacteristic of said stock. Such ASM stocks are further classified into long-term or short-term ASM frameworks based on objective criteria:

  • High Low Variation
  • Close to Close Price Variation
  • Market Capitalisation
  • Volume Variation
  • Client Concentration
  • Delivery Percentage
  • No. of Unique PANs
  • Price-to-Earnings (PE) Ratio

Applicability of Long-term ASM

Below we list some of the criteria that shall be applicable for the shortlisting of stocks in the Long Term ASM Framework.

High-Low Price Variation 

  • In the previous 3 months, corporate action adjusted-price variation exceeds (150% + Beta of the stock * Nifty 50 variation), 
  • The top 25 clients account for 25% of the combined stock trading volume of NSE & BSE in the past 30 days, and
  • Market Capitalisation exceeds Rs. 100 crores as of review.

Close-to-Close Price Variation 

  • Corporate action adjusted price variation in the last 60 trading days exceeds (100% + Beta of the stock * Nifty 50 variation), 
  • The top 25 clients account for 25% of the combined stock trading volume of  NSE & BSE in the past 30 days, and
  • Market Capitalisation exceeds Rs. 100 crores as of review.

Or

  • Corporate action adjusted price variation in the last 365 trading days exceeds (100% + Beta of the stock * Nifty 50 variation), 
  • High-Low Price Variation exceeds (200% + Beta (B) of the stock * Nifty 50 variation), 
  • The top 25 clients account for 25% of the combined stock trading volume of NSE & BSE in the past 30 days, and
  • Market Capitalisation exceeds Rs. 500 crores as of review.

Volume Variation

  • The average daily volume is equivalent to at least 10,000 shares in a month, 
  • Monthly volume variation exceeds 500% of average daily volumes in the preceding 3 months, 
  • The top 25 clients account for 25% of the combined stock trading volume of NSE & BSE in the past 30 days, 
  • Average Delivery is below 50% in the last 3 months,
  • Close-to-Close price variation in the last one month exceeds (50% + Beta of the stock * Nifty 50 variation), and
  • Market Capitalisation exceeds Rs. 500 crores as of review.

Exemption: Average Volume of Bulk or Block Quantity / Security greater than 50%.

However, the following securities shall be excluded from the ASM List:

  • Securities already under Graded Surveillance Measure (GSM)
  • PSEs and PSBs
  • Securities on which derivative products are available
  • Securities already under Trade for Trade segment

After completing 90 calendar days in the Long-term ASM Framework, securities are eligible for a stage-wise exit from the framework every week.

ASM Stages

Stocks are subjected to stage-wise surveillance action after inclusion in the ASM framework, which we explain below.

ASM Stage Action
I 100% margin applicable from T+3 day
II Reduction in the price band to next lower level and 100% margin applicable from T+3 day
III Further reduction in the price band to next lower level and 100% margin applicable from T+3 day
IV Settlement shall be on a Gross basis with a 100% margin for all clients and a 5% price band

Additionally, ASM stocks cannot be pledged or used for margin trading. Intraday leverage (MIS/BO/CO) is not allowed on ASM stocks. These stocks are also subjected to a 5% circuit filter to restrict price volatility. The benefits of all corporate actions, including bonuses, dividends, stock split, etc., are passed on to the shareholders, even if it’s an ASM stock.

Significance of ASM Listed Stocks

The purpose of introducing an ASM framework on listed stocks is to alert investors about the high volatility experienced in them, which should not be the case in the normal course of business. It is also a means of advising investors to conduct due diligence before investing in ASM stocks.

However, the imposition of ASM on stocks should not be construed as an action against the company. Instead, investors must realise that ASM applies to stocks solely for surveillance purposes.

List of ASM Stocks

Below we tabulate a few ASM stocks listed on NSE in which you should be cautious about investing.

Company ASM Stage CMP (Rs.) Market Cap (Rs. Crs) YTD (%)
Adani Power IV- Long Term 390.50 150,613 291.68
Ambuja Cements Ltd. I – Short Term  501.25  1.02L 42.87
Jindal Worldwide III- Long Term 270.85 5,431 16.24
Fineotex Chemical Ltd. I – LongTerm 329.95 3.65T 154.24
Weizmann Ltd. I – Short Term  73.00 115.77 28.15 

As of 26/09/2022

Overview of ASM Listed Stocks

Adani Power (APL)

Listed in 2009, Adani Power is India’s largest private thermal power producer, with plants located in Gujarat, Maharashtra, Karnataka, Rajasthan, and Chhattisgarh. It also owns a 40 MW solar power project in Gujarat. 

Do keep an eye on the share price of Adani Power on Angel One before investing.

Ambuja Cements 

Present in 80 countries, Ambuja Cements LTD is one of the largest Indian cement manufacturers. Started in 1993, the company mainly focuses on cement, aggregate and concrete.

Before investing, do check out the share price of Ambuja Cements on Angel One.

Jindal Worldwide

Founded in 1961, the company is one of the leading textile manufacturers. The firm has also diversified into Chemicals, Financial services and trading

Keep an eye on the share price of Jindal Worldwide on Angel One before investing.

Fineotex Chemical

Fineotex Chemical Ltd was incorporated in 1979. The main business of the firm is manufacturing auxiliaries and specialty chemicals for textiles, construction, water treatment, fertiliser, leather, and paint industries.

Want to invest? Check out the share price of  Fineotex Chemical on Angel One.

Weizmann

Being a flagship company of Weizmann Group, Weizman Ltd started the business in Textile Processing and Exports, Fin-Tech and Renewable Energy. The company then diverted into several other operations.

Track the share price of  Weizmann on Angel One before investing.

Conclusion

In addition to accounting for market-related and company-related risks when investing in stocks, investors should also be careful about stocks exposed to the ASM framework and conduct extra due diligence before adding them to their portfolio. And don’t forget to open your Demat account with Angel One before you start trading online.

Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.