Understanding Additional Surveillance Measures (ASM) in Stock Trading

What are Additional Surveillance Measures (ASM)?

To enhance market integrity and protect investor interests, the Securities and Exchange Board of India (SEBI) and stock exchanges implement Additional Surveillance Measures (ASM) on stocks that show significant surveillance concerns. These concerns may arise from factors like unusual price or volume changes and volatility. For more information on these parameters, please refer to the FAQ section on the National Stock Exchange (NSE) website.

Points to remember:
  1. Trade-to-Trade Settlement: Stocks under ASM will fall under the 'Trade to Trade' settlement category. This means transactions in these stocks are strictly for delivery, and the Buy Today Sell Tomorrow (BTST) facility will not be applicable.
  2. Delivery Only Transactions: Investors can only purchase these shares for delivery, indicated as Invest/CNC (Cash and Carry) orders. Consequently, Intraday trading, Cover Orders (CO), and Bracket Orders (BO) are not permitted for such stocks.
  3. Haircut Rate: A 100% haircut will be applied to ASM stocks, implying that these securities cannot be used as collateral for obtaining funds since they will not be assigned any collateral value for pledging purposes.
For an updated list of stocks under ASM, traders can click here.

    • Related Articles

    • What are Graded Surveillance Measures (GSM) in stock trading?

      SEBI and Exchanges, after joint surveillance discussions, have introduced Graded Surveillance Measures (GSM) to monitor stocks. These measures address securities where the price isn't in alignment with the company's financial health and fundamentals, ...
    • What does 'Additional Lumpsum' mean in Mutual Fund investments?

      A lumpsum investment pertains to a one-time commitment of funds into a specific mutual fund scheme. Essentially, when you invest a certain sum all at once, that's termed as a 'lumpsum' investment. Now, an 'additional lumpsum' is when you decide to ...
    • How do I respond to an increased margin requirement?

      Should the margin requirement rise, it becomes imperative for investors to allocate additional funds for their open positions. Failure to do so may result in the position being squared off.
    • Do I get extra leverage for intraday futures positions?

      Previously, brokers had the latitude to offer clients additional margins for intraday futures trades, requiring less than the margins for overnight transactions. However, with the peak margin regulations in play, this facility is no longer available. ...
    • Can I continue my intraday futures positions beyond the day?

      Absolutely! You can extend your intraday futures position to an overnight position by using the 'Convert' option found under the 'Positions' Tab on the Account Manager. There will not be any additional margin required to convert the position. ...