BSE to move eight companies out of ASM framework from September 24

Leading exchange BSE will move out eight companies from the additional surveillance measure (ASM) framework from September 24.

The companies are Commex Technology, Oscar Investments, Tiaan Ayurvedic & Herbs, ACI Infocom, Kretto Syscon, Oasis Tradelink, Usher Agro, and VKJ Infradevelopers.

Usher Agro will be excluded from the framework from September 24 by the rival exchange NSE as well.

In separate communications dated September 21, the exchanges also said that Globus Spirits has been shortlisted in ASM framework with effect from September 24.

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

The surveillance actions applicable for the shortlisted securities include placing them in the price band of 5 per cent and levying margins at the rate of 100 per cent.

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

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 in its circular.

The securities which are placed under the framework are reviewed on bi-monthly (two months) or periodic basis for the applicability of the ASM.

According to the exchanges, if the parameters for shortlisting securities under the framework are not satisfied then they become eligible to move out of ASM.

In its notice, the BSE said that the shortlisting of securities under ASM framework "is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company/ entity".