Sebi planning to add more stocks to additional surveillance mechanism

Regulator to tighten inclusion criteria; move aimed at reducing manipulation

The Securities and Exchange Board of India (Sebi) is planning to apply additional surveillance mechanism (ASM) to more securities to discourage investors from making speculative bets.

According to sources, the market regulator is planning to tighten the criteria for inclusion of stocks in the ASM list.

Currently, there are six criteria to shortlist stocks that will be put under ASM. These criteria are based on high/low price variation, close-to-close price variation, concentration of volumes, and monthly volume variation.

Sources say the regulator is also planning to introduce delivery-based volume as an additional condition for selection of stocks to