ASM stands for Additional Surveillance Measure. It is a framework introduced by NSE and BSE to monitor stocks that show abnormal price and volume movement stocks that are rising or falling too sharply without any clear business reason behind it.
When a stock is placed under ASM, it does not mean trading is stopped. You can still buy and sell the stock, but the exchange increases the margin requirement significantly. Depending on the stage, the margin can go up to 100% of the trade value meaning you need the full amount available in your account before placing a buy order.
ASM has multiple stages. A stock enters Stage 1 first, and if the unusual activity continues, it can move to higher stages with stricter conditions. As the stock’s trading behaviour normalises, the exchange reviews and may reduce the stage or remove it from ASM entirely.
The ASM list is published by NSE and BSE and is updated regularly. You can check if a stock is under ASM on the exchange websites before placing an order.
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