What is ASM (Additional surveillance measures)?

Additional Surveillance Measures (ASM) is a protective initiative by the Securities Exchange Board of India (SEBI) and exchanges, aimed at safeguarding investor interests and enhancing market integrity. The criteria for categorizing stocks under ASM can be found in the NSE FAQ (PDF). These stocks are further divided into two categories: long-term ASM and short-term ASM.

The surveillance actions applicable to these stocks include:

Visit nseindia.com/reports/asm to see the list of stocks under the ASM category.

Securities under ASM are closely monitored and may be moved to the trade-to-trade (T2T) segment if specific criteria are met. 

For stocks under ASM, 100% of the traded value will be blocked as margins, meaning no intraday leverage is provided (MIS/BO/CO isn’t allowed). However, MIS is still permitted for F&O stocks under Stage 1 of Short-Term Additional Surveillance Measures (ST-ASM) (PDF).

Pledging of stocks under the ASM category is not allowed. 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. Stocks can either be unpledged or kept pledged without collateral margins until moved out of ASM.

Did you know? Corporate actions, such as dividends, bonuses, splits, etc., are not impacted by a stock being under ASM. The benefits of corporate actions are passed on to the shareholder even if the stock is under the ASM category.