Definition
Additional Surveillance Measure (ASM)
ASM is a SEBI/exchange framework that flags stocks showing unusual price or volume activity, applying extra surveillance and trading curbs.
When a stock shows abnormal volatility, sharp price swings, or concentration of activity, it can be placed under ASM. Consequences may include higher margins (up to 100%), narrower price bands, and a shift to periodic call auctions, all designed to caution investors and curb speculation.
ASM has short-term and long-term stages with escalating restrictions. Being under ASM is not an accusation of wrongdoing, but it signals that a stock needs careful handling, often seen in low-float small-caps.
Related terms
- SEBISEBI is the Securities and Exchange Board of India, the statutory regulator of the securities markets, protecting investors and overseeing exchanges, intermediaries and listed companies.
- Graded Surveillance Measure (GSM)The Graded Surveillance Measure is a SEBI/exchange framework that imposes escalating restrictions on securities with weak fundamentals or abnormal price behaviour, moving them through stages of increasing severity.
- Trade-to-Trade (T2T) SegmentThe trade-to-trade segment requires that every transaction in a listed security result in compulsory delivery, prohibiting intraday netting or speculation in that stock.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.