what is stasm stage 1

STASM stands for Short Term Additional Surveillance Measure, which is a measure taken by the Securities and Exchange Board of India (SEBI) and exchanges to safeguard the interests of investors in the stock market. STASM has several stages, with STASM Stage I being the first stage. When a stock is added to STASM Stage I, it is given a chance to provide clarification, and the information of the stock being added to the Short term ASM will be displayed on the website to update the investors. The applicable margin rate for these stocks will be 1.5 times the existing margin or 40% whichever is higher, and the maximum margin is capped at 100% .