ASM Stocks : List of Best ASM Stocks in 2024

It's well-known that the Indian Stock Market experiences significant volatility. Reviewing past trends reveals not just a pattern of high fluctuations but also instances of market manipulation and scams.

Despite these challenges, the stock market continues to be a highly attractive investment venue, especially for retail investors. Consequently, it's essential for the Securities and Exchange Board of India (SEBI) to implement proactive measures to maintain market integrity.

To address trading challenges, SEBI has enforced strict surveillance measures, including the Additional Surveillance Measure (ASM).
List of Best ASM Stocks to Invest Consider

What are ASM and ASM List in the Share Market?

Introduced in 2018, the Additional Surveillance Measure (ASM) is a regulatory initiative by SEBI and recognized stock exchanges designed to monitor highly volatile stocks in the Indian stock market. It acts as a safeguard to control speculative trading and protect retail investors from adverse trading conditions.

The ASM List includes securities under close watch due to their price volatility, volume changes, and overall market behavior. Placing stocks on the ASM List aims to make investors more cautious and alert them about potential risks.

However, it's important to understand that the ASM framework is intended for market surveillance purposes and is not a punitive measure against the listed companies.

Criteria to Determine ASM List Stocks

SEBI and the stock exchanges use the following criteria to identify ASM List stocks:

• Close to Close Price Variation
• Client Concentration
• Delivery Percentage
• High Low Variation
• Market Capitalization
• Number of Unique PANs
• Price Earning Ratio (PE)
• Volume Variation

Significance of ASM list for the Investors

For investors, monitoring significant market fluctuations is crucial for making informed decisions. Stocks under the ASM list face stricter regulations. They cannot be pledged, and intraday leverages, such as cover orders and bracket orders, are not permitted. The regulations ensure that 100% of the traded value of these stocks is blocked as margins, and a 5% circuit filter is applied to limit share price fluctuations, thus stabilizing stock prices and benefiting long-term retail investors.

Despite being on the ASM list, companies can still distribute dividends, bonuses, and conduct stock splits.

Conditions For Adding Stocks Under ASM List

The following are the conditions based on which the stock is put under an ASM list:

If, 

• In the previous 3 months, there was a price fluctuation of  around 150% or more (based on corporate action adjusted prices) AND a minimum 25% concentration of the top 25 clients in the last 30 days AND market capitalization is greater than 100 crores on the review date

OR

• In the last 60 trading days, there was a  Close–to–Close Price Variation (based on corporate action adjusted prices) of a minimum of 100% AND in the last 30 days the concentration of Top 25 clients account is a minimum of 30% of the combined trading volume of BSE & NSE in the stock 

OR

• In 365 days if there was a Close–to–Close Price Variation (based on corporate action adjusted prices) of a minimum of 100%  AND the high–low Price Variation (based on corporate action adjusted prices) was a minimum of 200% + (Beta (β) of the stock * Nifty 50 variation) AND Market Capitalization is more than Rs.500 Crore as of the review date AND in the last 30 days, the concentration of Top 25 clients account was a minimum 30% of the combined trading volume of BSE & NSE in the stock 

OR

• The average daily volume in a month is a minimum of 10,000 shares & more than 500% of the Average volume in the preceding 3 months at both exchanges (BSE & NSE) AND in the last 30 days, the concentration of Top 25 clients accounts for a minimum of 30% of the combined trading volume of BSE & NSE in the stock. AND in the last 3 months, the average delivery % is more than 50%  AND the market capitalisation is more than Rs.500 Crore as of the review date AND in last month, the close–to–close price variation (based on corporate action adjusted prices) is more than (50% + Beta (β) of the stock * Nifty 50 variation).

However, the following securities are to excluded to be shortlisted under ASM List

• Public Sector Enterprises and Public Sector Banks (PSU)
• Securities on which derivative products are available
• Securities already under Graded Surveillance Measure (GSM)
• Securities already under Trade for Trade

Stagewise Surveillance Action

After entering into the ASM list, the stocks are categorized into 4 stages and accordingly actions are taken on the same. The actions can be summarized in the below table:

Exiting the ASM List

Securities which have completed 90 trading days in the long-term ASM shall be liable to exit the list. Also, the stage review shall be done weekly.

10 ASM List Shares

The current ASM List includes the following 98 stocks as per NSE for long term. Investors are suggested to be extra cautious while dealing with such high volatile stocks:

The current ASM List includes the following 20 stocks as per NSE for short term. Investors are suggested to be extra cautious while dealing with such high volatile stocks:

Important things to remember:

1. Do Not Blindly Follow Hot Tips

No matter how credible the source is, never follow a stock marketing tip blindly without conducting thorough research personally. Always select the stocks after doing proper research and analysis on the performance as well as the companies. While some tips can work out to give you huge benefits, the wrong ones can push you down under the risk pretty quickly. 

2. Eliminate Loser Stocks from Portfolio 

There is absolutely no guarantee that a stock will rise after a great fall. Know that it is extremely important to be practical about what is possible and what's impossible in the stock market. So, upon realizing that a stock is performing poorly in your portfolio, accept your mistake and sell it immediately to prevent further losses. 

3. Don't Exceed Your Investment Budget Abruptly 

While it's true that long-term investments are way better than other forms of investment, you shouldn't exceed your investment budget in a haste. Instead, decide on a fixed amount and invest it across various good stocks. Rather than investing in only one stock, divide your budget evenly across multiple good-performing stocks and shares. 

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns