LT ASM: A list of stocks under SEBI surveillance

Should you press the panic button?

The additional surveillance measure (ASM) is a part of various initiatives undertaken by Securities & Exchange Board of India (SEBI) and the domestic stock exchanges to ensure & enhance market integrity as well as safeguard the interest of investors.  

Securities included under ASM are those with surveillance concerns i.e. price variation, volatility, etc. The main objective of implementing these measures is to alert and advise investors to be extra cautious while dealing in these securities and also, to advise the market participants to carry out due diligence while dealing in these securities.  

Initially, securities are placed under a price band of 5 per cent and further reduce as they move from stages to stages. Also, 100 per cent of the traded value will get blocked as margins i.e. no intraday leverage is given. Further, investors cannot pledge the stocks that are in ASM. The shortlisted securities are monitored on pre-determined objective criteria and are then moved into trade for trade segment once the criteria get satisfied.  

The shortlisting of the stock under the ASM framework is only for surveillance and not for disciplinary action against the company. Hence, investors shouldn’t panic if their stock is listed into the ASM list, as it can be moved out of the list if the fundamentals of the company are strong enough.  

As of June 16, 2021 , there are 556 stocks under the (long-term) LT ASM list. Out of which, Arvind Ltd, Tata Steel BSL, Kirloskar Pneumatic, Graphite India, Goa Carbon, etc. are some the ones under stage I while Sagarsoft (India), Reliance Capital, Kranti Industries, etc. fall under stage II; Aditya Consumer Marketing is in stage III; CG Power & Industrial Solutions, Butterfly Gandhimathi Appliances, Tips Industries, Godawari Power and Ispat, some of Adani Group companies, etc. are some in stage IV.