You must have heard in the last few months that some shares of the Adani Group were put on the ASM list by the stock market regulators following a report by American short seller firm Hindenburg. In such a situation, the question is arising in the minds of many people that what is the ASM list and what is its effect.3
What is ASM list?
ASM List is also known as ASM Framework. In this, any stock is included on the basis of high volatility in price and volume. Its objective is to protect the interests of the investors as well as to alert them.
ASM list parameters
For inclusion of any stock in the ASM list, the security is assessed by the regulator on certain parameters, some of which are as follows.
- high volatility in share price
- Continuous upper or lower circuit in the stock
- volume fluctuations
- PE Ratio
- delivery percentage
- Market capitalization
How many types of ASM list are there?
There are two types of ASM list. First – Long Term ASM List and Second – Short Term ASM List. Based on the criteria, the shares are included in different lists. The long term ASM list has four stages, while the short term ASM list has two stages.
What should an investor do when a stock is included in the ASM list?
Investors need to be apprehensive when any stock is included in the ASM list , as these steps are taken by the regulators to protect the interest of the investors. Its purpose is to reduce the volatility of the stock.
