Equirus Wealth
23 May 2024 • 3 min read
The Additional Surveillance Measure (ASM) framework is an initiative by the Securities and Exchange Board of India (SEBI) and stock exchanges to maintain market integrity and protect investor interests. The framework includes various surveillance measures, such as the Graded Surveillance Measure (GSM), reduction in price bands, periodic call auctions, and transferring securities to the Trade for Trade segment. The main goals are to alert investors about potential risks and ensure due diligence by market participants.
The ASM framework identifies securities based on specific, objective criteria, including:
Criteria for Inclusion:
Surveillance Actions:
Criteria for Inclusion:
Surveillance Actions:
The ASM framework has been in effect since March 26, 2018. The stock exchanges, in coordination with SEBI, issue regular circulars informing market participants about the framework and listing securities under surveillance. The measures are applied based on dynamic criteria and are reviewed regularly to ensure effectiveness.
Securities can exit the ASM framework based on a stage-wise review:
Being listed under ASM should not be seen as an adverse action against a company. It is a measure to enhance market transparency and protect investors. The framework operates in addition to other regulatory actions and can be complemented by specific measures depending on market conditions.
The ASM framework is a crucial tool for maintaining market discipline and protecting investor interests. By applying objective criteria and dynamic surveillance measures, SEBI and stock exchanges aim to ensure a fair and transparent market environment.
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