Understanding Additional Surveillance Measures (ASM)

Post Date : December 7, 2024

What is ASM?

Additional Surveillance Measures (ASM) is a regulatory framework introduced by the Securities and Exchange Board of India (SEBI) in collaboration with stock exchanges to enhance investor protection and maintain market integrity. Stocks are categorized under ASM based on defined criteria, as detailed in NSE FAQ (PDF).

ASM classifications include:

• Long-term ASM
• Short-term ASM

For the latest list of stocks under the ASM category, visit the NSE website.

Key Surveillance Actions for ASM Stocks

1. Trade-to-Trade (T2T) Movement:

• Stocks under ASM may transition to the T2T segment based on eligibility.
• For details, refer to What are Trade-to-Trade or T2T stocks?

2. Margin Blocking:

• 100% margin of the traded value is required, with no intraday leverage available (MIS/BO/CO orders are restricted).
• Exception: MIS is permitted for F&O stocks under Stage 1 of Short-Term ASM (ST-ASM). Refer to the NSE (PDF).

3. Pledging Restrictions:

• Stocks under ASM cannot be pledged for margin purposes.
• If a pledged stock enters the ASM list, collateral margins will no longer be available. Investors can either unpledge or retain the stock in pledge without collateral benefits until it exits ASM.

SEBI’s Graded Surveillance Measures (GSM)

Alongside ASM, SEBI has implemented the Graded Surveillance Measures (GSM) to further safeguard investors and ensure market transparency. Learn more about GSM here: What does GSM mean?

Key Notes:

• Corporate Actions Are Unaffected:
  Stocks under ASM continue to provide corporate action benefits, such as dividends, bonuses, and splits. Shareholders retain these benefits regardless of ASM status.

For further information and updates, visit the NSE website.