ASM List – What to do in ASM list Stocks?

In Stock Market | Last Updated October 16, 2017|3 Comments

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 35 stocks along with scrip code that are placed under Long Term ASM List –

Long Term – Additional Surveillance Measure (LT-ASM)

Sr No Symbol Company Name ASM Stage
1 8KMILES 8K Miles Software Services Limited Stage III
2 A2ZINFRA A2Z Infra Engineering Limited Stage I
3 ADLABS Adlabs Entertainment Limited Stage I
4 AIFL Ashapura Intimates Fashion Limited Stage I
5 ARCOTECH Arcotech Limited Stage I
6 ASSAMCO Assam Company India Limited Stage I
7 BKMINDST Bkm Industries Limited Stage I
8 CELESTIAL Celestial Biolabs Limited Stage I
9 EDL Empee Distilleries Limited Stage I
10 EXCELINDUS Excel Industries Limited Stage I
11 GAYAHWS Gayatri Highways Limited Stage I
12 GPIL Godawari Power And Ispat limited Stage I
13 GPTINFRA GPT Infraprojects Limited Stage I
14 GRAVITA Gravita India Limited Stage I
15 GTNIND GTN Industries Limited Stage I
16 IBULISL Indiabulls Integrated Services Limited Stage I
17 INDOSOLAR Indosolar Limited Stage I
18 ISFT Intrasoft Technologies Limited Stage I
19 JPPOWER Jaiprakash Power Ventures Limited Stage I
20 KWALITY kwality limited Stage II
21 LASA Lasa Supergenerics Limited Stage I
22 MERCK Merck Limited Stage I
23 NELCO NELCO Limited Stage I
24 OPTIEMUS Optiemus Infracom Limited Stage I
25 PREMIER Premier Limited Stage I
26 ROLTA Rolta India Limited Stage I
27 SANCO Sanco Industries Limited Stage I
28 SEPOWER S.E. Power Limited Stage II
29 SKIL SKIL Infrastructure Limited Stage I
30 SORILINFRA SORIL Infra Resources Limited Stage I
31 SUMEETINDS Sumeet Industries Limited Stage I
32 TIJARIA Tijaria Polypipes Limited Stage I
33 VAKRANGEE Vakrangee Limited Stage I
34 VETO Veto Switchgears And Cables Limited Stage I
35 VISESHINFO Visesh Infotecnics Limited Stage I

Here is the list of 23 stocks along with scrip code that are placed under Short Term ASM List –

Short Term – Additional Surveillance Measure (ST-ASM)

Sr No Symbol Company Name ASM Stage
1 3IINFOTECH 3i Infotech Limited Stage I
2 ADANITRANS Adani Transmission Limited Stage I
3 AGRITECH Agri-Tech (India) Limited Stage I
4 ARIHANT Arihant Foundations & Housing Limited Stage I
5 BCG Brightcom Group Limited Stage I
6 COUNCODOS Country Condo’s Limited Stage I
7 CUBEXTUB Cubex Tubings Limited Stage I
8 FCSSOFT FCS Software Solutions Limited Stage I
9 GAMMNINFRA Gammon Infrastructure Projects Limited Stage I
10 HOTELEELA Hotel Leela Venture Limited Stage I
11 JPINFRATEC Jaypee Infratech Limited Stage I
12 MANAKSTEEL Manaksia Steels Limited Stage I
13 MVL MVL Limited Stage I
14 PARACABLES Paramount Communications Limited Stage I
15 PATSPINLTD Patspin India Limited Stage I
16 PVP PVP Ventures Limited Stage I
17 RTNPOWER RattanIndia Power Limited Stage I
18 SALSTEEL S.A.L. Steel Limited Stage I
19 SCAPDVR Stampede Capital Limited Stage I
20 SUJANAUNI Sujana Universal Industries Limited Stage I
21 SUPREMEINF Supreme Infrastructure India Limited Stage I
22 TARMAT Tarmat Limited Stage I
23 VASWANI Vaswani Industries Limited Stage I

Note above list is as on 30th Nov 2018. You can find the latest list on BSE website under Notice and Circulars section.

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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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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