The Long-term Additional Surveillance Measure (LT ASM) is a regulatory framework introduced by SEBI and Indian stock exchanges to monitor and manage risks in stocks that exhibit continuous abnormal trading patterns. This framework is designed to protect investors and enhance market integrity by imposing stricter trading conditions on selected securities for an extended period.
Criteria for Inclusion in LT ASM
Stocks are selected for the Long-term Additional Surveillance Measure (LT ASM) list based on objective criteria jointly defined by SEBI and the exchanges.
These criteria include significant price swings (high-low and close-to-close variations over defined periods), abnormal trading volume fluctuations, high client concentration (such as the top 25 clients accounting for a large share of volume), differentiated market capitalization thresholds, low diversity among traders (few unique PANs), low delivery percentage, and extremely high or volatile price-earnings (PE) ratios.
Stages of LT ASM
LT ASM (Long-Term Additional Surveillance Measure) is applied in steps. As a stock moves through each step, trading restrictions become stricter to help control unusual price movements or speculation.
- Stage I: 100% margin requirement from T+3 days; price band may be reduced.
- Stage II: Further reduction in price band; continued 100% margin.
- Stage III: Additional price band reduction; continued 100% margin.
- Stage IV: Settlement on a gross basis (trade-to-trade), 100% margin, and a restrictive price band (e.g., 5%). For derivative stocks, new contracts are not issued, and existing contracts are settled as per expiry.
Here is the list of stocks that have been shortlisted in the Long-Term ASM Framework:
Parshva Enterprises Ltd
Parshva Enterprises Ltd. is a Mumbai-based public limited company that trades in cut and polished diamonds and gold jewelry. The company also invests in and brokers real estate in Maharashtra and Gujarat, and in 2024, it demerged its jewelry business into a subsidiary called Simandhar Impex Limited.
On October 20th, the company was included in the LT-ASM stage I Framework by the stock exchanges.
BITS Ltd
BITS Ltd is an India-based company primarily engaged in providing education and training services in fields like computer software, hardware, business management, and engineering, through its own institutes, colleges, and universities. It also offers corporate management training and operates a business of trading and importing/exporting software.
On October 20th, the company was included in the LT-ASM stage I Framework by the stock exchanges.
Trescon Ltd
Trescon Ltd is primarily engaged in the real estate development sector and offers IT and allied services. The company, headquartered in Mumbai, focuses on building quality homes and is listed on both exchanges.
On October 20th, the company was included in the LT-ASM stage I Framework by the stock exchanges.
Krishna Capital & Securities Ltd
Krishna Capital & Securities Ltd is a non-banking financial company (NBFC) incorporated in 1995, headquartered in Ahmedabad, India. The company’s core business activities include financing through advances and short-term loans, trading in shares and securities, and bill discounting.
On October 20th, the company was included in the LT-ASM stage II Framework by the stock exchanges.
Richfield Financial Services Ltd
Richfield Financial Services Ltd is a non-banking finance company (NBFC) in India that provides various financial products like gold loans, microfinance, and investments in shares and securities. Headquartered in Kolkata, the company aims to support financial inclusion, particularly for unbanked individuals in rural and semi-urban areas.
On October 20th, the company was included in the LT-ASM stage I Framework by the stock exchanges.
Rajeshwari Cans Ltd
Rajeshwari Cans is involved in manufacturing round printed tin containers of various sizes used as packing material for tobacco and snuff. The Company supplies tin containers to customers involved in tobacco manufacturing and paint manufacturing, and performs printing work on tin sheets supplied by customers.
On October 20th, the company was included in the LT-ASM stage II Framework by the stock exchanges.
Written by Sridhar J
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