LT ASM: A list of stocks under SEBI surveillance

The Additional Surveillance Measure (ASM) is a part of initiatives by Securities and Exchange Board of India (SEBI) and the exchanges to ensure and enhance market integrity and safeguard the interest of investors.

ASM on securities is for 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 or lower as applicable. Also, 100 per cent of the traded value will get blocked as margins that is, 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 additional surveillance measure (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 September 14, 2020, there are 276 stocks under the (long-term) LT ASM list. Out of which, Mukand Ltd, Coral Laboratories, Valiant Communications, Dhampure Speciality Sugars, Ramco Systems, and Digicontent are in stage II; CG Power and Industrial Solutions are in stage III; Ruchi Soya Industries, Tuticorin Alkali Chemicals & Fertilisers and Hathway Cable & Datacom are in stage IV while the rest come under stage I.

Below is a list (in no particular order) of some of the stocks shortlisted for LT ASM: