Now Reading: BSE imposes short-term surveillance on select stocks
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BSE imposes short-term surveillance on select stocks
The Bombay Stock Exchange (BSE) has announced the applicability of Short Term Additional Surveillance Measure (ST-ASM) on certain scrips with effect from a date specified in the circular. The measure is aimed…
The Bombay Stock Exchange (BSE) has announced the applicability of Short Term Additional Surveillance Measure (ST-ASM) on certain scrips with effect from a date specified in the circular. The measure is aimed at curbing speculative trading and ensuring market stability by imposing additional surveillance on stocks that exhibit significant price movements.
Under the ST-ASM framework, the identified securities will be subject to a higher margin requirement and a price band restriction. The BSE circular provides a list of stocks that will come under this surveillance mechanism, which is part of the exchange's broader market risk management strategy.
Trading members and investors are advised to take note of the changes and comply with the new margin and trading parameters for the affected securities. The move is effective from the date mentioned in the official notification on the BSE website.
Indian Opinion Analysis
The ST-ASM framework was introduced by market regulator Sebi to cool down stocks that have seen sharp, unexplained price rises over a short period, often driven by speculative activity. Under this mechanism, the exchange imposes a price band of 5% or lower and collects an additional margin of 100% on the trade value. Investors holding these stocks must either pay the extra margin upfront or face forced square-off. The BSE reviews the list periodically, and stocks are moved out of the surveillance once price volatility normalises. The next list revision is expected in a fortnight.
Source: bseindia.com
This story was synthesised by AI from the source linked above.
