Regulation ASM SEBI Short-term

Short-term ASM

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Short-term ASM (ST-ASM) is the rapid-response surveillance track within the Additional Surveillance Measure framework. Where Long-term ASM responds to month-end statistical triggers, ST-ASM responds to acute single-day or short-window price spikes.

When ST-ASM triggers

ST-ASM triggers when a scrip experiences:

  • A single-day price move beyond defined thresholds (typically 10-15% in either direction).
  • A short-window cumulative move (over 5-10 trading days) above a higher threshold.
  • Volume spike disproportionate to the scrip’s average activity.

The trigger is computed daily by the exchange’s surveillance engine; ST-ASM additions can be announced same-day or by next-day open.

Restrictions

RestrictionApplies
100% upfront marginYes
Price band tightening (typically 5%)Yes
T2T enforcementNot always (depends on stage)
MIS / intraday allowedReduced; varies

ST-ASM is less restrictive than LT-ASM Stage 2+, but still tightens the trading environment significantly.

Observation period

ST-ASM has a short observation period:

  • Initial period: 5-10 trading days.
  • If the trigger persists: May be escalated to LT-ASM.
  • If the trigger normalises: ST-ASM is removed.

This is much faster than LT-ASM’s monthly cycle.

Difference from LT-ASM

AspectST-ASMLT-ASM
Trigger speedDaily / weeklyMonthly
Observation period5-10 days1-3 months
RestrictionsLighterHeavier (Stages 1-4)
FrequencyHundreds of additions per yearFewer, more selective
Exit criteriaTrigger normalisesMulti-month observation

A scrip on ST-ASM can be a “speed bump” surveillance event; LT-ASM is more permanent.

Common ST-ASM triggers in practice

  • News-driven price spike. Corporate announcement (good or bad) drives a 10%+ same-day move; ST-ASM kicks in.
  • Sector momentum. A broad sector rally affecting many mid-cap names; multiple scrips enter ST-ASM concurrently.
  • Retail-driven momentum. Social media or finfluencer-driven flow concentrated in a mid / small-cap; rapid price acceleration triggers ST-ASM.
  • Volume spikes. Unusual delivery volumes on a normally illiquid scrip.

Effect on order placement

For a scrip on ST-ASM:

  • Buy orders: Cannot be funded by intraday leverage; full 100% upfront required.
  • Sell orders (delivery): Still allowed, but T2T may apply (preventing intraday squareoff).
  • Tighter price band: Daily move capped; limit orders far from LTP may not execute.

Zerodha’s Kite flags ST-ASM scrips in the marketwatch dropdown with a surveillance indicator.

How traders use ST-ASM info

Active traders monitor ST-ASM additions as a signal:

  • New ST-ASM additions often indicate fresh speculative activity.
  • ST-ASM exits can signal momentum cooling.
  • Repeated ST-ASM cycles on the same scrip suggest persistent speculative interest.

For long-term investors, ST-ASM is mostly a confirmation that a holding is in a volatile patch.

Cross-reference with LT-ASM

A scrip can be on:

  • ST-ASM only.
  • LT-ASM only (with stage).
  • Both ST-ASM and LT-ASM (rare but possible).

The combined effect determines the actual restrictions.

Where to see ST-ASM

  • NSE: nseindia.com > Market data > Short-term ASM list.
  • BSE: bseindia.com > Surveillance > ST-ASM.
  • Updated daily (post-market) on both exchanges.

For Kite users, the surveillance tag is visible on the scrip’s quote screen and market depth panel.

See also

External references

References

  1. SEBI, Short-term ASM framework, circular dated 11 December 2018.
  2. NSE India, Short-term ASM operational guidelines, nseindia.com.
  3. BSE India, Short-term ASM rules, bseindia.com.

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