ASM List Stocks in India: Significance to Investors

ASM List: Introduction
It is not a hidden fact that the Indian stock market is subject to high volatility. And while checking on the past trends, we have not only been witnessing a streamlined high-fall situation but also have been subject to some massive market manipulation and scams.
Yet, the stock market remains to be one of the most appealing places for investment, especially for retail investors. For this reason, it becomes crucial for the Securities Board Exchange of India (SEBI) to establish pre-emptive measures to protect the integrity of the
market. Though, to curb the trading difficulties, SEBI has introduced some highly regulated surveillance measures, one of which is the Additional Surveillance Measure (ASM).
Let us understand the relevance of the same.
Summary in brief:
- What are ASM and ASM List in the share market?
- Criteria to determine ASM List stocks.
- Significance of ASM list for investors
- Conditions for adding stocks under ASM List
- Stagewise Surveillance action
- Exiting the ASM List
- 10 ASM List shares.
- FAQs
What are ASM and ASM List in the Share Market?
Additional Surveillance Measure or ASM was introduced in 2018 as a regulatory initiative by SEBI and recognised stock exchanges to monitor the highly volatile stocks in the Indian stock market. It serves as a control speculative trading measure to safeguard the interest of retail investors and protect them from adverse trading situations.
The ASM List stocks are those securities that are currently under surveillance owing to their price variation, volume variation, and their volatility. The objective to put these stocks on an ASM list is to make the investors cautious and to alert them while dealing with such stocks.
However, it is to note that the intention of an ASM framework is purely for the reasons of market surveillance and not to be construed as an action against the company.
Criteria to Determine ASM List Stocks
The following parameters have been used as a criterion by SEBI and stock exchanges to shortlist ASM List stocks:
- Close to Close Price Variation
- Client Concentration
- Delivery Percentage
- High Low Variation
- Market Capitalization
- No. of Unique PANs
- Price Earning Ratio (PE)
- Volume Variation
Significance of ASM list for the Investors
As an investor, it is of utmost importance that one keeps an eye on the major fluctuations to make the best investment decision. ASM serves that purpose.
A stock under the ASM list is subject to stricter regulations. They cannot be pledged and also are denied the intraday leverages such as cover order, bracket order, etc. Here, the regulation point is established as 100% of the traded value of such stocks gets blocked as margins. Also, these are subject to a 5% circuit filter. This means that the share price of an ASM-listed stock is not to fluctuate by more than 5%. This limits the profit or loss for traders. This also results in stability in the price of the stock. Thus, working best in the interest of long-term retail investors.
Whatsoever, despite being added to the ASM list, the company's actions benefiting the investors are not affected. Perks like dividends, bonuses and stock splits are carried out as usual.
Conditions For Adding Stocks Under ASM List
The following are the conditions based on which the stock is put under an ASM list:
If,
- In the previous 3 months, there was a price fluctuation of around 150% or more (based on corporate action adjusted prices) AND a minimum 25% concentration of the top 25 clients in the
- last 30 days AND market capitalization is greater than 100 crores on the review date
OR
- In the last 60 trading days, there was a Close–to–Close Price Variation (based on corporate action adjusted prices) of a minimum of 100% AND in the last 30 days the concentration of Top 25 clients account is a minimum of 30% of the combined trading volume of BSE & NSE in the stock
OR
- In 365 days if there was a Close–to–Close Price Variation (based on corporate action adjusted prices) of a minimum of 100% AND the high–low Price Variation (based on corporate action adjusted prices) was a minimum of 200% + (Beta (β) of the stock * Nifty 50 variation) AND Market Capitalization is more than Rs.500 Crore as of the review date AND in the last 30 days, the concentration of Top 25 clients account was a minimum 30% of the combined trading volume of BSE & NSE in the stock
OR
- The average daily volume in a month is a minimum of 10,000 shares & more than 500% of the Average volume in the preceding 3 months at both exchanges (BSE & NSE) AND in the last 30 days, the concentration of Top 25 clients accounts for a minimum of 30% of the combined trading volume of BSE & NSE in the stock. AND in the last 3 months, the average delivery % is more than 50% AND the market capitalisation is more than Rs.500 Crore as of the review date AND in last month, the close–to–close price variation (based on corporate action adjusted prices) is more than (50% + Beta (β) of the stock * Nifty 50 variation).
However, the following securities are to excluded to be shortlisted under ASM List
- Public Sector Enterprises and Public Sector Banks (PSU)
- Securities on which derivative products are available
- Securities already under Graded Surveillance Measure (GSM)
- Securities already under Trade for Trade
Stagewise Surveillance Action
After entering into the ASM list, the stocks are categorized into 4 stages and accordingly actions are taken on the same. The actions can be summarized in the below table:
STAGE | ACTION |
Stage I | The applicable margin for all clients will be 80% from T+3 days |
Stage II | Reduction of price band to next lower level and applicable margin for all clients. will be 100% from T+3 day |
Stage III | Further reduction of price band to next lower level and applicable margin shall be 100% from T+3 day for all clients.
|
Stage IV | Settlement is on a Gross basis with 100% margin on all clients and 5% price band.
|
Exiting the ASM List
Securities which have completed 90 trading days in the long-term ASM shall be liable to exit the list. Also, the stage review shall be done weekly.
10 ASM List Shares
The current ASM List includes the following 98 stocks as per NSE for long term. Investors are suggested to be extra cautious while dealing with such high volatile stocks:
SR. NO | SYMBOL | COMPANY NAME | ISIN | ASM STAGE |
---|---|---|---|---|
1 | 4THDIM | Fourth Dimension Solutions Limited | INE382T01030 | LTASM - IV (16) |
2 | ACEINTEG | Ace Integrated Solutions Limited | INE543V01017 | LTASM - I (13) |
3 | ADANIGREEN | Adani Green Energy Limited | INE364U01010 | LTASM - I (13) |
4 | ADANITRANS | Adani Transmission Limited | INE931S01010 | LTASM - I (13) |
5 | AGNI | Agni Green Power Limited | INE0LF301013 | LTASM - I (13) |
6 | APOLLO | Apollo Micro Systems Limited | INE713T01010 | LTASM - I (13) |
7 | ARCHIES | Archies Limited | INE731A01020 | LTASM - I (13) |
8 | ARENTERP | Rajdarshan Industries Limited | INE610C01014 | LTASM - I (13) |
9 | ARROWGREEN | Arrow Greentech Limited | INE570D01018 | LTASM - I (13) |
10 | ATGL | Adani Total Gas Limited | INE399L01023 | LTASM - I (13) |
11 | AXISCADES | AXISCADES Engineering Technologies Limited | INE555B01013 | LTASM - I (13) |
12 | AXISCADES | AXISCADES Technologies Limited | INE555B01013 | LTASM - I (13) |
13 | BRIGHT | Bright Solar Limited | INE684Z01010 | LTASM - I (13) |
14 | BRNL | Bharat Road Network Limited | INE727S01012 | LTASM - I (13) |
15 | BSHSL | Bombay Super Hybrid Seeds Limited | INE032Z01020 | LTASM - IV (16) |
16 | CADSYS | Cadsys (India) Limited | INE090Y01013 | LTASM - I (13) |
17 | CEREBRAINT | Cerebra Integrated Technologies Limited | INE345B01019 | LTASM - I (13) |
18 | CLOUD | Varanium Cloud Limited | INE0JOO01013 | LTASM - I (13) |
19 | CONTI | Continental Seeds and Chemicals Limited | INE340Z01019 | LTASM - I (13) |
20 | DRL | Dhanuka Realty Limited | INE704V01015 | LTASM - I (13) |
21 | DTIL | Dhunseri Tea & Industries Limited | INE341R01014 | LTASM - I (13) |
22 | FELDVR | Future Enterprises Limited | IN9623B01058 | LTASM - I (13) |
23 | GENCON | Generic Engineering Construction and Projects Limited | INE854S01022 | LTASM - I (13) |
24 | GOLDSTAR | Goldstar Power Limited | INE405Y01021 | LTASM - I (13) |
25 | GOLDTECH | Goldstone Technologies Limited | INE805A01014 | LTASM - I (13) |
26 | GRPLTD | GRP Limited | INE137I01015 | LTASM - I (13) |
27 | HEADSUP | Heads UP Ventures Limited | INE759V01019 | LTASM - I (13) |
28 | HIRECT | Hind Rectifiers Limited | INE835D01023 | LTASM - I (13) |
29 | HITECHGEAR | The Hi-Tech Gears Limited | INE127B01011 | LTASM - I (13) |
30 | INDSWFTLAB | Ind-Swift Laboratories Limited | INE915B01019 | LTASM - I (13) |
31 | INDSWFTLTD | Ind-Swift Limited | INE788B01028 | LTASM - I (13) |
32 | JWL | Jupiter Wagons Limited | INE209L01016 | LTASM - I (13) |
33 | KAMDHENU | Kamdhenu Limited | INE390H01012 | LTASM - I (13) |
34 | KKCL | Kewal Kiran Clothing Limited | INE401H01017 | LTASM - I (13) |
35 | KOHINOOR | Kohinoor Foods Limited | INE080B01012 | LTASM - I (13) |
36 | KORE | Jay Jalaram Technologies Limited | INE0J6801010 | LTASM - I (13) |
37 | KRISHIVAL | Empyrean Cashews Limited | INE0GGO01015 | LTASM - I (13) |
38 | KTKBANK | The Karnataka Bank Limited | INE614B01018 | LTASM - I (13) |
39 | LATTEYS | Latteys Industries Limited | INE262Z01023 | LTASM - II (14) |
40 | LGBFORGE | LGB Forge Limited | INE201J01017 | LTASM - I (13) |
41 | LPDC | Landmark Property Development Company Limited | INE197J01017 | LTASM - I (13) |
42 | MADHUCON | Madhucon Projects Limited | INE378D01032 | LTASM - I (13) |
43 | MAGNUM | Magnum Ventures Limited | INE387I01016 | LTASM - I (13) |
44 | MAHAPEXLTD | Maha Rashtra Apex Corporation Limited | INE843B01013 | LTASM - I (13) |
45 | MAKS | Maks Energy Solutions India Limited | INE0CDK01019 | LTASM - I (13) |
46 | MALUPAPER | Malu Paper Mills Limited | INE383H01017 | LTASM - I (13) |
47 | MANAKSIA | Manaksia Limited | INE015D01022 | LTASM - I (13) |
48 | MANUGRAPH | Manugraph India Limited | INE867A01022 | LTASM - I (13) |
49 | MARATHON | Marathon Nextgen Realty Limited | INE182D01020 | LTASM - I (13) |
50 | MARSHALL | Marshall Machines Limited | INE00SZ01018 | LTASM - II (14) |
51 | MBAPL | Madhya Bharat Agro Products Limited | INE900L01010 | LTASM - IV (16) |
52 | MCL | Madhav Copper Limited | INE813V01022 | LTASM - I (13) |
53 | MEP | MEP Infrastructure Developers Limited | INE776I01010 | LTASM - I (13) |
54 | MIRCELECTR | MIRC Electronics Limited | INE831A01028 | LTASM - I (13) |
55 | MOLDTECH | Mold-Tek Technologies Limited | INE835B01035 | LTASM - I (13) |
56 | MOTOGENFIN | The Motor & General Finance Limited | INE861B01023 | LTASM - I (13) |
57 | MRO-TEK | MRO-TEK Realty Limited | INE398B01018 | LTASM - I (13) |
58 | NAGREEKEXP | Nagreeka Exports Limited | INE123B01028 | LTASM - I (13) |
59 | NDTV | New Delhi Television Limited | INE155G01029 | LTASM - I (13) |
60 | NITCO | Nitco Limited | INE858F01012 | LTASM - I (13) |
61 | NITIRAJ | Nitiraj Engineers Limited | INE439T01012 | LTASM - I (13) |
62 | NPST | Network People Services Technologies Limited | INE0FFK01017 | LTASM - II (14) |
63 | NURECA | Nureca Limited | INE0DSF01015 | LTASM - I (13) |
64 | OMINFRAL | OM INFRA LIMITED | INE239D01028 | LTASM - I (13) |
65 | ONELIFECAP | Onelife Capital Advisors Limited | INE912L01015 | LTASM - I (13) |
66 | PANSARI | Pansari Developers Limited | INE697V01011 | LTASM - I (13) |
67 | PARSVNATH | Parsvnath Developers Limited | INE561H01026 | LTASM - I (13) |
68 | PCJEWELLER | PC Jeweller Limited | INE785M01013 | LTASM - I (13) |
69 | PERFECT | Perfect Infraengineers Limited | INE925S01012 | LTASM - I (13) |
70 | PONNIERODE | Ponni Sugars (Erode) Limited | INE838E01017 | LTASM - I (13) |
71 | REFEX | Refex Industries Limited | INE056I01017 | LTASM - I (13) |
72 | RILINFRA | Rachana Infrastructure Limited | INE02OY01016 | LTASM - I (13) |
73 | RMDRIP | R M Drip and Sprinklers Systems Limited | INE219Y01018 | LTASM - II (14) |
74 | ROLLT | Rollatainers Limited | INE927A01040 | LTASM - I (13) |
75 | ROSSELLIND | Rossell India Limited | INE847C01020 | LTASM - I (13) |
76 | RPPINFRA | R.P.P. Infra Projects Limited | INE324L01013 | LTASM - I (13) |
77 | SECURCRED | SecUR Credentials Limited | INE195Y01010 | LTASM - I (13) |
78 | SETCO | Setco Automotive Limited | INE878E01021 | LTASM - I (13) |
79 | SIMBHALS | Simbhaoli Sugars Limited | INE748T01016 | LTASM - I (13) |
80 | SITINET | Siti Networks Limited | INE965H01011 | LTASM - I (13) |
81 | SKMEGGPROD | SKM Egg Products Export (India) Limited | INE411D01015 | LTASM - I (13) |
82 | SOUTHBANK | The South Indian Bank Limited | INE683A01023 | LTASM - I (13) |
83 | SPCENET | Spacenet Enterprises India Limited | INE970N01027 | LTASM - IV (16) |
84 | SUPREMEINF | Supreme Infrastructure India Limited | INE550H01011 | LTASM - I (13) |
85 | SVPGLOB | SVP GLOBAL TEXTILES LIMITED | INE308E01029 | LTASM - I (13) |
86 | TAPIFRUIT | Tapi Fruit Processing Limited | INE0M7001010 | LTASM - I (13) |
87 | TCPLPACK | TCPL Packaging Limited | INE822C01015 | LTASM - I (13) |
88 | TGBHOTELS | TGB Banquets And Hotels Limited | INE797H01018 | LTASM - I (13) |
89 | TIMESGTY | Times Guaranty Limited | INE289C01025 | LTASM - I (13) |
90 | UJJIVAN | Ujjivan Financial Services Limited | INE334L01012 | LTASM - I (13) |
91 | URAVI | Uravi T and Wedge Lamps Limited | INE568Z01015 | LTASM - I (13) |
92 | USASEEDS | Upsurge Seeds Of Agriculture Limited | INE0CBM01019 | LTASM - I (13) |
93 | VASA | Vasa Retail and Overseas Ltd | INE068Z01016 | LTASM - I (13) |
94 | WALCHANNAG | Walchandnagar Industries Limited | INE711A01022 | LTASM - I (13) |
95 | WEL | Wonder Electricals Limited | INE02WG01016 | LTASM - I (13) |
96 | WELINV | Welspun Investments and Commercials Limited | INE389K01018 | LTASM - I (13) |
97 | YAARI | Yaari Digital Integrated Services Limited | INE126M01010 | LTASM - I (13) |
98 | ZIMLAB | Zim Laboratories Limited | INE518E01015 | LTASM - I (13) |
Data : As on 24th Feb 2023, Source: NSE
Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns
The current ASM List includes the following 20 stocks as per NSE for short term. Investors are suggested to be extra cautious while dealing with such high volatile stocks:
SR. NO | SYMBOL | COMPANY NAME | ISIN | ASM STAGE |
1 | 3PLAND | 3P Land Holdings Limited | INE105C01023 | STASM - II (12) |
2 | AAKASH | Aakash Exploration Services Limited | INE087Z01024 | STASM - I (11) |
3 | AARVI | Aarvi Encon Limited | INE754X01016 | STASM - I (11) |
4 | ADANIENT | Adani Enterprises Limited | INE423A01024 | STASM - I (11) |
5 | BLBLIMITED | BLB Limited | INE791A01024 | STASM - II (12) |
6 | CAREERP | Career Point Limited | INE521J01018 | STASM - I (11) |
7 | DCAL | Dishman Carbogen Amcis Limited | INE385W01011 | STASM - I (11) |
8 | DSSL | Dynacons Systems & Solutions Limited | INE417B01040 | STASM - II (12) |
9 | FOCUS | Focus Lighting and Fixtures Limited | INE593W01010 | STASM - I (11) |
10 | GEEKAYWIRE | Geekay Wires Limited | INE669X01016 | STASM - I (11) |
11 | IEL | Indiabulls Enterprises Limited | INE059901020 | STASM - I (11) |
12 | KRITI | Kriti Industries (India) Limited | INE479D01038 | STASM - I (11) |
13 | MGEL | Mangalam Global Enterprise Limited | INE0APB01024 | STASM - I (11) |
14 | NUCLEUS | Nucleus Software Exports Limited | INE096B01018 | STASM - I (11) |
15 | PENIND | Pennar Industries Limited | INE932A01024 | STASM - I (11) |
16 | SHRADHA | Shradha Infraprojects Limited | INE715Y01023 | STASM - I (11) |
17 | SOMATEX | Soma Textiles & Industries Limited | INE314C01013 | STASM - II (12) |
18 | UNIVCABLES | Universal Cables Limited | INE279A01012 | STASM - I (11) |
19 | VAISHALI | Vaishali Pharma Limited | INE972X01014 | STASM - I (11) |
20 | ZEELEARN | Zee Learn Limited | INE565L01011 | STASM - I (11) |
Data : As on 24th Feb 2023, Source: NSE
Important things to remember:
1. Do Not Blindly Follow Hot Tips
No matter how credible the source is, never follow a stock marketing tip blindly without conducting thorough research personally. Always select the stocks after doing proper research and analysis on the performance as well as the companies. While some tips can work out to give you huge benefits, the wrong ones can push you down under the risk pretty quickly.
2. Eliminate Loser Stocks from Portfolio
There is absolutely no guarantee that a stock will rise after a great fall. Know that it is extremely important to be practical about what is possible and what's impossible in the stock market. So, upon realizing that a stock is performing poorly in your portfolio, accept your mistake and sell it immediately to prevent further losses.
3. Don't Exceed Your Investment Budget Abruptly
While it's true that long-term investments are way better than other forms of investment, you shouldn't exceed your investment budget in a haste. Instead, decide on a fixed amount and invest it across various good stocks. Rather than investing in only one stock, divide your budget evenly across multiple good-performing stocks and shares.
Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns
How are the market participants made aware of various ASM undertaken in short notice?
In order to deal with this, the recognised stock exchanges like BSE and NSE have issued circulars providing information to the market players on the ASM framework. They also have provided a unified list of businesses. All surveillance operations are triggered based on mentioned criteria and shall be implemented cordially in the Exchanges.
How to deal with the stocks in the ASM list?
ASM list stocks are subject to a 5% circuit filter and with which the trader dealing in such stocks need to deposit 100% margin. This implies margin trading shall not be available in such stocks.
What is the Stage 4 ASM list?
Stage 4 is the final stage in the ASM List. The settlement in this stage is on a gross basis with a 100% margin on all clients and a 5% price band.
What happens if the stock pledged is moved under ASM?
In that case the investor shall no longer be provided collateral margins for that stock. This is because, as per ASM 100% margin should be levied. The collateral value thus will be reduced by the value of collateral received against that stock.