FIVE STOCKS THAT ARE INCLUDED IN SHORT-TERM ASM FRAMEWORK TO LOOK OUT FOR
Short-term Additional Surveillance Measure (ST-ASM) is a regulatory framework by SEBI and Indian stock exchanges to monitor stocks showing sudden, abnormal trading patterns. It aims to protect investors and maintain market integrity by imposing temporary, stricter trading conditions on such volatile or speculative securities.
When a stock is put under Stage 1 of the ST-ASM framework, the margin requirements go up. Traders may need to keep anywhere between 50-100% margin, depending on the stock’s volatility and risk as assessed by the exchange. In this stage, intraday trading with leverage is not allowed. Investors can only do delivery trades, meaning they must pay the full amount to buy and hold the shares. These rules are designed to curb risky speculation in stocks showing unusual price swings or heavy trading by a few players, ensuring fairness and protecting small investors.
Some of the stocks in the ST-ASM list are -