Several stocks from sectors including defence, logistics, finance and digital services have recently been brought under the Additional Surveillance Measure (ASM) framework by stock exchanges.
The framework, introduced by SEBI and exchanges, is aimed at monitoring stocks that witness unusual price movements, abnormal trading volumes or heightened volatility. Inclusion under ASM results in stricter trading and margin requirements but does not imply any adverse action against the company.
Stocks added to Long-Term ASM
The following companies were included in the Long-Term Additional Surveillance Measure (LT-ASM) framework on June 17:
Apollo Micro Systems Ltd
The Hyderabad-based company manufactures defence electronics and supplies systems for missile, avionics, naval and space applications.
NIBE Ltd
NIBE operates in precision engineering and defence manufacturing and focuses on domestic production and self-reliance initiatives.
Shadowfax Technologies Ltd
Shadowfax provides logistics and last-mile delivery services to e-commerce and quick commerce businesses through a technology-driven platform.
Stocks added to Short-Term ASM
The following companies were placed under the Short-Term Additional Surveillance Measure (ST-ASM) framework:
IZMO Ltd
The company provides digital automotive solutions, including software, 3D visualization and online retail platforms for automobile manufacturers and dealers.
Aegis Logistics Ltd
Aegis Logistics operates storage, handling and distribution infrastructure for LPG, petroleum products and chemicals.
IFCI Ltd
IFCI is a government-backed financial services company involved in project financing, advisory services and asset management activities.
MSTC Ltd
MSTC provides e-auction and e-procurement services and facilitates digital sale of scrap, coal and surplus materials.
What is ST-ASM?
The Short-Term ASM framework is used to monitor stocks witnessing sudden changes in trading patterns over shorter periods.
Parameters considered include:
- Sharp price movements
- Unusual trading volumes
- High concentration among a few clients
- Limited trader participation
- Elevated volatility over five to 15 days
What is LT-ASM?
The Long-Term ASM framework is designed for stocks showing persistent abnormal trading behaviour.
The criteria include:
- Large price fluctuations over longer periods
- Unusual volume movements
- High client concentration
- Low diversity among traders
- Low delivery percentages
- High or volatile price-to-earnings ratios
- Market capitalization thresholds
The surveillance measures are intended to strengthen market integrity and discourage speculative trading.
TL;DR:
Stock exchanges have placed several companies under the ASM framework to monitor unusual trading activity. Apollo Micro Systems, NIBE and Shadowfax entered the LT-ASM list, while IZMO, Aegis Logistics, IFCI and MSTC were included in ST-ASM.
AI summary:
- Apollo Micro Systems, NIBE and Shadowfax were added to LT-ASM.
- IZMO, Aegis Logistics, IFCI and MSTC entered ST-ASM.
- ASM is used to monitor stocks showing unusual trading activity.
- The framework imposes tighter trading and margin requirements.
- Inclusion under ASM does not imply regulatory wrongdoing.
