Short-term Additional Surveillance Measure (ST ASM) is a regulatory framework by SEBI and Indian stock exchanges to monitor stocks showing sudden, abnormal trading patterns. It aims to protect investors and maintain market integrity by imposing temporary, stricter trading conditions on such volatile or speculative securities.
Criteria for Inclusion in ST ASM
Stocks are selected for the Short-term Additional Surveillance Measure (ST ASM) list based on objective, market-based parameters jointly defined by SEBI and the exchanges. The main criteria include:
The criteria for inclusion in the Short-term Additional Surveillance Measure (ST ASM) are based on sudden abnormal price movements, sharp volume fluctuations, high client concentration, limited trader diversity, and volatility over a short period (typically 5 to 15 days). These parameters help exchanges identify stocks showing speculative or unusual trading activity for temporary, stricter monitoring
Here is the list of stocks that have been excluded from the ST-ASM Framework:
United Drilling Tools Ltd
United Drilling Tools Ltd (UDTL), founded in 1985 and headquartered in Noida, is a leading Indian manufacturer of high-quality oilfield equipment for the upstream oil and gas industry. The company specializes in products such as wireline winches, gas lift valves, side pocket mandrels, large OD casing connectors, and drilling stabilizers, serving both domestic and international markets. On June 25th, United Drilling Tools Ltd was excluded from the ST-ASM Framework by the stock exchanges.
Carysil Ltd
Carysil Ltd, established in 1987 and headquartered in Bhavnagar, Gujarat, is a global leader in kitchen solutions, specializing in premium quartz and stainless steel sinks, faucets, and built-in kitchen appliances. The company is Asia’s top manufacturer and the world’s fourth-largest producer of quartz kitchen sinks, renowned for its German-engineered technology and innovative designs. On June 25th, Carysil Ltd was excluded from the ST-ASM Framework by the stock exchanges.
NELCO Ltd
Nelco Ltd, established in 1940 and part of the Tata Group, is a leading provider of satellite communication (SatCom/VSAT) services in India. Headquartered in Navi Mumbai, the company delivers reliable data connectivity solutions for enterprise and government clients, focusing on unserved and underserved regions. On June 25th, NELCO Ltd was excluded from the ST-ASM Framework by the stock exchanges.
Lakshmi Mills Company Ltd
Lakshmi Mills Company Ltd, established in 1910 and based in Coimbatore, Tamil Nadu, is one of India’s oldest and most respected textile mills. The company is engaged in the manufacture of cotton and blended yarns, fabrics, and garments, catering to both domestic and international markets. On June 25th, Lakshmi Mills Company Ltd was excluded from the ST-ASM Framework by the stock exchanges.
Criteria for Exclusion from ST ASM
A stock may be considered for exit from the ST ASM framework if it no longer meets the inclusion criteria. The process is as follows:
- Minimum Period: A stock must remain in the Short-term ASM (ST ASM) framework for a minimum period, typically 5 or 15 trading days, depending on the stage, before it becomes eligible for review and possible exit.
- Stage-wise Review: Stocks are reviewed after completing the minimum period in each stage. The review assesses whether the stock still meets the entry criteria for ST ASM, such as abnormal price movements or high client concentration.
- Exit Criteria: If, during the review, the stock no longer meets the inclusion criteria for its current stage, it is eligible to move to the next lower stage. A stock in Stage I that does not meet the criteria can be fully exited from the ST ASM framework.
- Ongoing Monitoring: The process is dynamic, with regular reviews ensuring that only stocks displaying recent abnormal trading patterns remain under ST ASM.
Written by Sridhar J
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