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:
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.
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.
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.
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