Additional Surveillance Measure
An exchange framework placing restrictions on securities showing unusual price or volume behaviour.
How it is identified
Test: the security meets criteria on price variation, volume, delivery percentage, concentration or valuation over the review period
Unit
qualitative
In depth
Securities entering the ASM framework face higher margin requirements, tighter price bands and in the more severe stages trade-for-trade settlement, which prohibits intraday squaring off. The purpose is to curb speculative activity in stocks showing unusual behaviour, and the effect is a sharp fall in liquidity that can trap holders. Inclusion is not an allegation of wrongdoing and is applied mechanically from criteria, so ordinary companies enter it after a strong run. Checking whether a security is under ASM before buying is a basic step that many retail investors discover only when a trade is rejected.
Worked example
A stock enters short-term ASM with 100% margin required and moves to trade-for-trade settlement. An intraday buyer finds the sell order rejected and must take full delivery, paying the entire value the same day.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Additional Surveillance Measure” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.