What happens if a stock is in ASM?
Intraday trading in ASM listed stock will be very difficult. Trader dealing in such stocks have to deposit 100\% margin, and these counters attract 5\% circuit filter. This means stock price in such stock cannot go up or down by more than 5\%. This means traders have limited profit or losses.
How long does a stock stay in ASM list?
1. The stocks shall be retained in each stage as applicable for a minimum period of 5 / 15 trading days and shall be eligible for review from 6th / 16th Trading day onwards. 2. Accordingly, if a stock is not meeting entry criteria on the review date, it shall be moved out of Short-term ASM framework.
What is SEBI ASM and how does it work?
SEBI has been working continuously with an intent to keep investors safe and put a check for stock brokers / Promoters manipulation of stock prices. SEBI has directed NSE and BSE to introduce additional surveillance measures (ASM) to curb volatility in some of the stock prices.
What is ASM list in share market?
ASM is Additional Surveillance Measures. It is a new category formulated by SEBI to check market manipulation. High-risk stocks are placed under ASM list. Let’s try to understand this by example. Graphite India is a multibagger stock.
What is ASM framework under 5\% price band?
As per SEBI new guidelines and as part of ASM framework, it has released a list of 109 stocks where BSE/NSE would put them under 5\% price band (upper or lower circuit) and a 100 \% margin will be applicable to such stocks. As per the ASM framework, stock exchanges would review these stocks on a bimonthly basis.
How ASM measures help Uninformed investors?
The ASM measures helps uninformed investor as it reduce speculation in the stock market. If your portfolio contains ASM listed stocks, please do not get panic. Please do not invest further for intra trading or short term investment as these stocks price may go down due to this announcement.