
Big news has come about private sector bank Indusind Bank. After the market closed on March 13, 2025, the exchange NSE took a big decision. The stock has been put in ASM (Additional Surveillance Measure). About 42 shares have been included in this category.
What will be the impact of this decision- ASM (Additional Surveillance Measure) i.e. "Additional Surveillance Measure" is a special surveillance framework of the Indian stock market, which is implemented by SEBI (Securities and Exchange Board of India) and stock exchanges (NSE, BSE). Its main objective is to control volatility in the stock market and protect investors from risk.
Under the ASM framework, those stocks are included in which sudden volatility or suspicious trading activity is seen. What happens if a stock is included in ASM- If a stock is put in the ASM list, then some special rules and restrictions are imposed on its trading, so that excessive speculation in it can be prevented. Restrictions imposed on the stock when it comes in the ASM list:- Margin is increased:- Usually, investors are lent money on margin to buy shares. But after coming under the ASM framework, the margin increases (often to 100%), making it difficult to trade on credit. Impact on intraday trading:- At times, intraday trading is restricted or stopped. The stock is put in the trade-to-trade (T2T) segment only, i.e. intraday square-off is not allowed. Circuit limit is reduced:- The limit of price movement (Upper/Lower Circuit) is reduced for the stocks included in ASM, so that excessive volatility in the stock can be prevented. Example: If earlier the circuit limit of a stock was 20%, then it is reduced to 5% or 2%.
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