Additional Surveillance Measure (ASM)

  • In order to enhance market integrity and safeguard interest of investors, Securities and Exchange Board of India (SEBI) and Exchanges have been introducing various enhanced pre-emptive surveillance measures such as reduction in price band, periodic call auction and transfer of securities to Trade for Trade segment from time to time.
  • In continuation to various surveillance measures already implemented, SEBI and Exchanges have decided that along with the aforesaid measures there shall be Additional Surveillance Measures (ASM) on securities with surveillance concerns based on objective parameters viz. Price / Volume variation, Volatility etc.

There are two types of ASMs:

  • Short-term additional surveillance measures .
  • Long-term surveillance measures. 

Stocks that are moved to ASM can’t be pledged. If in case a stock that you have pledged is moved under ASM then you can’t receive collateral margins for it.

This is because according to ASM, 100% of the margin has to be levied.

The collateral value will decrease by the value of collateral obtained against that particular stock. Investors have the option of unplugging the stock or keep it pledged without collateral till it is removed from ASM.

Please note that corporate actions are not affected if a stock is under ASM. The shareholders are still eligible for all corporate benefits like bonus, dividend, stock split, etc. even when the stock is under ASM.

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