ASM List – What to do in ASM list Stocks?

ASM List

The ASM list has created havoc in the stock market. All shares listed under ASM list are declining sharply. Investors are worried and directionless. They are wondering about what to do in ASM listed stocks? If your portfolio also contains ASM shares and you need help about decoding term ASM and precaution you should take here is complete information about ASM including ASM list.

What is ASM?

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. Graphite India has given exceptionally high returns to the investors in past one year. On 31st May, 2017 stock price of Graphite India was Rs.115 and on 31st May, 2018 price of Graphite India was Rs.888. This means in last one year this stock has given 672% CAGR return to the investors.

Graphite India is now placed under ASM list. Similar to Graphite India there are other multibagger stocks such as HEG, Dilip Buildcon which are placed in ASM list. You must be thinking why multibagger stocks are placed in ASM list.

The stocks that follow simple criteria such as price volume spike is put under watch. Apart from that if a stock price is not justifying fundamentals it is put under ASM list.

Also Read – Top 5 Best Stock Screener for Indian Stock Market

ASM list is released by BSE and NSE as per SEBI’s guideline under ASM framework. The intent is to keep the Indian equity markets safe for investors and check undue volatility in stock prices.

The exchange will review these stocks on a bimonthly basis and make the changes as per ASM framework. The shortlisting of stock under the framework is only on the account of surveillance it is not a disciplinary action against the company.

How ASM affects Investors and Traders?

After getting complete understanding about ASM let’s try to understand how ASM affects stock market investors and traders.

  • 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.
  • One can sell shares if it is lying in the demat account.
  • For investor it is bad news. Due to negative bias, these type of stocks are likely to fall. Existing investors profit will be negatively impacted.
  • If you are long-term investors you need not worry about such short-term fluctuation or negative news.
  • The ASM measures helps uninformed investor as it reduce speculation in the stock market.

Also Read – Best Stocks to buy in India for long term Investment

ASM List

Here is the list of 21 stocks along with scrip code that are placed under Long Term ASM List –

Long Term – Additional Surveillance Measure (LT-ASM)

Sr NoSymbolCompany NameASM Stage
1AGCNETAGC Networks LimitedStage I
2AIFLAshapura Intimates Fashion LimitedStage I
3BKMINDSTBkm Industries LimitedStage I
4EDLEmpee Distilleries LimitedStage I
5GAYAHWSGayatri Highways LimitedStage I
6IL&FSTRANSIL&FS Transportation Networks LimitedStage I
7JPPOWERJaiprakash Power Ventures LimitedStage I
8MICMIC Electronics LimitedStage I
9NAVKARCORPNavkar Corporation LimitedStage I
10ORTELOrtel Communications LimitedStage II
11PRAKASHSTLPrakash Steelage LimitedStage I
12PUNJLLOYDPunj Lloyd LimitedStage I
13RAJTVRaj Television Network LimitedStage I
14SCAPDVRStampede Capital LimitedStage I
15SPLILSPL Industries LimitedStage I
16TERASOFTTera Software LimitedStage I
17TIJARIATijaria Polypipes LimitedStage I
18VAKRANGEEVakrangee LimitedStage I
19VETOVeto Switchgears And Cables LimitedStage I
20VIJIFINViji Finance LimitedStage I
21VISESHINFOVisesh Infotecnics LimitedStage IV

Here is the list of 22 stocks along with scrip code that are placed under Short Term ASM List –

Short Term – Additional Surveillance Measure (ST-ASM)

Sr NoSymbolCompany NameASM Stage
15PAISA5Paisa Capital LimitedStage I
2ADHUNIKAdhunik Metaliks LimitedStage I
3ANSALAPIAnsal Properties & Infrastructure LimitedStage I
4ANSALHSGAnsal Housing LimitedStage I
5ASALAutomotive Stampings and Assemblies LimitedStage I
6CHROMATICChromatic India LimitedStage I
7EASUNREYRLEasun Reyrolle LimitedStage I
8FCSSOFTFCS Software Solutions LimitedStage II
9FLEXITUFFFlexituff Ventures International LimitedStage I
10GRUHGruh Finance LimitedStage I
11GTLGTL LimitedStage I
12GTLINFRAGTL Infrastructure LimitedStage I
13JINDCOTJindal Cotex LimitedStage I
14KECLKirloskar Electric Company LimitedStage I
15KSERASERAKSS LimitedStage I
16NAGREEKCAPNagreeka Capital & Infrastructure LimitedStage I
17NILASPACESNila Spaces LimitedStage I
18NITESHESTNitesh Estates LimitedStage I
19PALREDTECPalred Technologies LimitedStage I
20SMPLSplendid Metal Products LimitedStage I
21SMSLIFESMS Lifesciences India LimitedStage I
22TGBHOTELSTGB Banquets And Hotels LimitedStage I

Note above list is as on 17th Jan 2019. You can find the latest list on NSE website.

What investor should do in ASM Listed Stocks?

ASM is good for the long-term investors. There can be short-term panic in ASM listed stocks but it is good for quality stocks as it eliminates speculations.

If you have ASM listed stock in your portfolio don’t get panic. Follow the steps given below.

  • Avoid Fresh entry in ASM listed stocks. Due to trading restriction stock price is likely to go down further.
  • Study fundamentals of the stock. If fundamentals of stocks are good to stay invested in the stock. If required take help of a stock market expert.
  • If fundamental of the company is bad then try to exit as early as possible.

Also Read – How to analyze the fundamentals of the company?

I hope the information given above on ASM list will be helpful to the investors.

What is your take on the ASM list?

Do share your queries and comments.

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Happy investing!

Article by Raviraj

Raviraj is the man behind moneyexcel.com. He is graduate in finance, engaged in blogging since 7 years. Moneyexcel blog is ranked as one of the Top 10 Personal Finance Blog in India. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

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1 Comment

  1. Amit Pal says:

    Thanks a lot for such a nice and informative article. Thank you so much for educating us.

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