What is ASM (Additional Surveillance Measures)?

To improve the integrity of the market and protect the investors’ interests, this is an initiative taken by SEBI and the exchanges. There are two types of ASMs:

  • Short-term additional surveillance measures

  • Long-term surveillance measures

To know more about these, you can refer to the NSE website. It covers the terms and conditions based on which stocks are moved to ASM as well as the surveillance actions relevant to these stocks. You can also find out which of the stocks are currently categorized under ASM.

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 total collateral value will decrease by the value of margin obtained against that particular stock. You have the option of unpledging 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 which means that the shareholders are still eligible for all corporate benefits like bonus, dividend, stock split, etc. even when the stock is under ASM.

To know more about ASM, click here.