The ASM (Additional Surveillance Measure) list is a list of securities that are currently under surveillance due to price variation, volatility, volume variation, and other factors. The list is created to alert investors to be cautious while dealing in these securities. SEBI and the exchanges select securities that have concerns based on predetermined criteria. The ASM framework is in conjunction with all other prevailing surveillance measures being imposed by the Exchanges from time to time and as may be applicable. The ASM list is divided into two categories: Long-term ASM and Short-term ASM.
The Long-term ASM list is allocated stages based on predetermined conditions. The stages are as follows:
- Stage 1: The applicable margin shall be 80% from T+3 days for all clients.
- Stage 2: The price band is reduced to the next lower level, and the applicable margin shall be 100% from T+3 days for all clients.
- Stage 3: Price band is further reduced to the next lower level, and the applicable margin shall be 100% from T+3 days for all clients.
- Stage 4: This is the final stage, and the settlement will be on a gross basis with a 100% margin on all clients and a 5% price band.
The Short-term ASM list has only two stages based on predetermined criteria:
- Stage 1: The applicable margin shall be 40% from T+1 day for all clients.
- Stage 2: The applicable margin shall be 100% from T+1 day for all clients.
Securities under ASM are further monitored and moved in the trade-to-trade (T2T) segment if the criteria are met. When a stock is moved to the ASM category, 100% of the traded value will get blocked as margins, and no intraday leverage is given. Pledging of stocks under the ASM category is not allowed, and if a stock that is pledged is moved under ASM, collateral margins will no longer be provided, and the collateral value will be reduced by the value of collateral received against the stock.
