What are Additional Surveillance Measures (ASM)?
Additional Surveillance Measures (ASM) are regulatory tools implemented by SEBI and stock exchanges like NSE and BSE to curb excessive speculation and volatility in specific stocks. The objective is to enhance market integrity and safeguard investor interests.
Why are stocks placed under ASM?
A stock may be moved to the ASM list based on certain surveillance parameters such as:
- Unusual price movements
- Sudden spikes in trading volume
- High volatility
- Concentrated client activity
These measures are proactive in nature and are not meant to indicate wrongdoing by the company.
For full criteria, refer to these NSE resources:
ASM Securities List on NSE
Official NSE FAQ on ASM (PDF)
Key trading restrictions under ASM
1. Trade-to-Trade Settlement
- All trades must result in delivery.
- BTST (Buy Today, Sell Tomorrow) is not allowed.
2. Delivery-Only Mode
- Orders can only be placed as Invest/CNC (Cash & Carry).
- Intraday, Bracket Orders (BO), and Cover Orders (CO) are restricted.
3. No Collateral Value
- ASM stocks carry a 100% haircut.
- They cannot be pledged for margin as they offer no collateral benefit.
What If...
| Scenario | Explanation |
|---|
| I try to place an intraday order in an ASM stock | The order will be rejected. Only CNC orders are allowed. |
| I attempt a BTST trade | Not permitted under ASM. Delivery-based settlement only. |
| I try to pledge ASM shares for margin | These shares won’t generate any margin value due to the 100% haircut. |
Before trading or investing, check if the stock is under ASM to avoid execution rejections or margin issues. The NSE publishes updated ASM lists regularly.
Last updated: 28 Jun 2025
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