What is ASM (Additional surveillance measures)?
Additional Surveillance measure (ASM) is an initiative by the Securities Exchange Board of India (SEBI) and exchanges to safeguard the interests of the investors and enhance market integrity. The stocks are moved to the ASM category based on certain criteria found in the NSE FAQ (PDF). Stocks under ASM are divided into two categories, i.e. long-term ASM and short-term ASM. 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:
- Securities under ASM are further monitored and moved in the trade-to-trade (T2T) segment if the criteria are met. To learn more, see What are Trade to Trade or T2T stocks?
- 100% of the traded value will get blocked as margins, i.e. no intraday leverage is given (MIS/BO/CO isn't allowed). However, MIS is still allowed for F&O stocks under Stage 1 of Short-Term Additional Surveillance Measures (ST-ASM) (PDF).
- Pledging of stocks under the ASM category is not allowed. If a pledged stock is moved under ASM, collateral margins will no longer be provided, and the collateral value will be reduced by the value of collateral received against the stock. The stocks can either be unpledged or kept pledged without the collateral margins until they are moved out of ASM.
SEBI has also introduced Graded Surveillance Measure (GSM) to safeguard the interests of the investors and enhance market integrity. To learn more, see What does GSM mean?
Did you know? Corporate actions are not impacted by a stock being under ASM. The benefits of corporate actions, like dividends, bonuses, splits, etc., are passed on to the shareholder even if the stock is under the ASM category.