5 Stocks that are included in short-term ASM framework to look out for

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.

ST- ASM (Additional Surveillance Measure) Stage 1

When a stock is put under Stage 1 of the ST-ASM framework, margin requirements go up. Traders may need to keep anywhere between 50 percent to 100 percent margin, depending on the stock’s volatility and risk as assessed by the exchange.

In this stage, intraday trading with leverage is not allowed. Investors can only do CNC (Cash and Carry) delivery trades, meaning they must pay the full amount to buy and hold the shares. 

The stock is usually reviewed every week and can be removed from the list after 5–15 trading days if it meets the required criteria. Trading is still allowed in these stocks, but with restrictions like no leverage, higher margins, and no intraday trades. 

These rules are designed to curb risky speculation in stocks showing unusual price swings or heavy trading by a few players, ensuring fairness and protecting small investors.

Here is the list of stocks that have been shortlisted in the Short-Term ASM Framework:

HBL Engineering Limited

HBL Engineering Limited was established in 1977 in Hyderabad, India. The company designs and manufactures specialized batteries and power systems for industries like defence, railways, aviation, and telecom. 

The company focuses on innovation and quality, providing reliable energy storage and engineering solutions worldwide. The company changed its name from HBL Power Systems Limited in 2024. On September 2nd, HBL Engineering was included in the ST-ASM Framework by the stock exchanges.

Jindal Photo Limited

Jindal Photo Limited was incorporated in 1986 and is part of the B.C. Jindal Group. The company engages in manufacturing, producing, selling, and distributing photographic products, including color paper and films.

The company also holds strategic investments and provides management consultancy services. Jindal Photo is headquartered in New Delhi, India. On September 2nd, Jindal Photo was included in the ST-ASM Framework by the stock exchanges.

RPP Infra Projects Limited

RPP Infra Projects Limited was incorporated in 1995 and promoted by R.P. Arulsundaram. The company is an integrated EPC company engaged in construction and infrastructure development. 

The company operates across sectors, including highways, roads, bridges, buildings, irrigation, water management, power, and industrial structures. The company focuses on quality, innovation, and cost-effective solutions in India and neighboring countries. On September 2nd, RPP Infra Projects was included in the ST-ASM Framework by the stock exchanges.

Denta Water and Infra Solutions Limited

Denta Water and Infra Solutions Limited was established in 2016 and is based in Bangalore, India, and is a water and infrastructure company. It specializes in the design, installation, and commissioning of water management infrastructure projects, particularly groundwater recharging using recycled water. 

The company also undertakes railway and highway construction projects. It offers end-to-end solutions from planning to maintenance, focusing mainly on water revitalization and sustainable infrastructure. On September 2nd, Denta Water and Infra Solutions was included in the ST-ASM Framework by the stock exchanges.

Jindal Poly Investment and Finance Company Limited

Jindal Poly Investment and Finance Company Limited is an India-based holding company incorporated in 2012. The company is primarily engaged in investment and holding investments, mainly in its subsidiary companies, with a focus on the power sector.  

The company subsidiaries include companies in the thermal power, renewable energy, real estate, and mining sectors. The company operates from New Delhi and aims to grow through strategic investments and asset management. On September 2nd, Jindal Poly Investment and Finance Company was included in the ST-ASM Framework by the stock exchanges.

Criteria for Exclusion from ST ASM

A stock placed under the Short-term ASM (ST-ASM) framework must stay there for at least 5 to 15 trading days before being considered for exit. During this period, the exchange checks if the stock still reflects abnormal trading activity, such as sharp price changes or concentrated trades by a few investors.

If the stock no longer meets these risk conditions, it can either be shifted to a lower stage or completely removed from the framework. This ensures that only stocks with unusual or volatile trading patterns continue under ST-ASM, while stable ones are released.

Written By – Nikhil Naik

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