What is ASM (Additional surveillance measures)?

ASM (Additional Surveillance Measure) is a regulatory framework introduced by SEBI (Securities and Exchange Board of India) in 2018. It's designed to keep a close watch on certain scrips that are considered high-risk and volatile. The ASM list consists of scrips that are prone to market manipulation, price volatility, and trading anomalies. The ASM framework puts in place certain trading restrictions on these scrips to safeguard investors and maintain market integrity. Scrips added to the ASM list may have lower trading limits, higher margin requirements, and increased surveillance by exchanges and regulators.

ASM involves monitoring of trading activity, order book and market depth analysis, and real-time price monitoring. Market participants may be required to provide additional disclosures or obtain prior approvals before engaging in certain types of trading activities. This increased level of monitoring and reporting is designed to detect potential market abuse or manipulation and to prevent its occurrence.

The specific measures and criteria for ASM can vary by jurisdiction and security type. For example, in India, the Securities and Exchange Board of India (SEBI) imposes ASM on certain stocks based on parameters such as their market capitalization, price volatility, and trading volume.

Note: If a stock you have pledged is moved under ASM, you will no longer be provided collateral margins for that stock, because ASM requires a 100% margin. The collateral value (as displayed on the trading terminals) will be reduced by the amount of collateral received in exchange for that stock.

You can either un-pledge the stock or keep it pledged with no collateral until it is removed from ASM.

Click here to know more about NSE ASM & the shares blocked for the day due to ASM.

Click here to know more about the stocks under ASM.

Click here for PDF.