Additional Surveillance measure (ASM) is an initiative by the Securities Exchange Board of India (SEBI) and exchanges to keep an eye on any market speculation and manipulations. SEBI has placed highly volatile and risky stocks under ASM list. The stocks are moved to the ASM category based on certain criteria that can be found in the NSE FAQ (PDF).
Visit nseindia.com/reports/asm to see the list of stocks under the ASM category.
The surveillance actions applicable to these stocks are as follows:
100% of the traded value will get blocked as margins, i.e. No Intraday leverage is provided for ASM listed stocks.
Corporate actions aren't impacted by a stock being under ASM. All corporate actions like Bonus, dividend, stock split, etc. the benefits are passed on to the shareholder even though scrip is under ASM.
Investor can't pledge stocks which are under surveillance list.
In cases where a stock pledged by an investor is moved under ASM, collateral margins will no longer be provided for that stock, because, as per ASM 100% margin should be levied.
The collateral value (shown on the trading terminals) will reduce by the value of collateral received against that stock.
The investor can either un-pledge the stock or keep the stock pledged without collateral until the stock is moved out of ASM.
The ASM shortlisted securities shall be further monitored on pre-determined objective criteria and would be moved into Trade for Trade segment once the criteria get satisfied.
While placing an order for security under ASM list, user shall need to provide consent for placing the order.
The exchanges review the ASM list in every 2 months and make the changes as per the defined ASM framework.
- Refer to this FAQ-ASM from NSE. This covers the criteria based on which stocks are moved to ASM and also the surveillance actions applicable to these stocks.