81 firms under Additional Surveillance Measure: NSE data

As many as 81 firms have come under the Additional Surveillance Measure (ASM) framework of the NSE, according to the latest data available with the exchange.

The data shows that the exchange has put companies like 8K Miles Software Services, Adani Green Energy, Amtek Auto, Bombay Dyeing and Mfg Company, Electrosteel Steels, Emami Infrastructure, GTL Infrastructure, Indiabulls Ventures, Jindal Worldwide and Jaypee Infratech, under the ASM.

Among other firms are KSK Energy Ventures, Manpasand Beverages, Morepen Laboratories, Radico Khaitan, Reliance Naval and Engineering, Shilpi Cable Technologies, Stampede Capital, TVS Electronics, Uttam Value Steels, V-Mart Retail, Zenith Exports, Zen Technologies and IOL Chemicals and Pharmaceuticals.

Public sector enterprises and public sector banks are excluded from the process of shortlisting of securities under the ASM.

The parameters for shortlisting securities under the ASM framework are high-low variation; client concentration; number of price band hits; close to close price variation and price-earning ratio.

After inclusion in the framework, stock filter circuit of 5 per cent is applicable from the date of inclusion in ASM, besides, requirement of 100 per cent margin to trade in such stock becomes applicable from the next trade date.

The securities which are placed under the ASM framework will be reviewed on a periodic basis, the NSE said in a circular today.

The review will be either for application of other surveillance measures like shifting of securities into trade-for-trade segment or exclusion from ASM, it added.

In order to enhance market integrity and safeguard investors interest, the Securities and Exchange Board of India and the exchanges have been introducing various enhanced pre-emptive surveillance measures such as reduction in price band, periodic call auction and transfer of securities to trade-to-trade category from time to time.

"Market participants may note that ASM framework shall be in conjunction with all other prevailing surveillance measures being imposed by the exchanges from time to time," the NSE said.

The exchange also noted that the shortlisting of securities under ASM is "purely on account of market surveillance and it should not be construed as an adverse action against the concerned company/ entity".