The concept of ASM.

This posting is on ASM (Additional Surveillance Measure) for those who are misunderstanding about ASM

🔹Stock Exchange has introduced ASM mainly for controlling Speculation (Trading) in the stock.

🔹ASM includes 2 basic points
1) Circuit Filter 5%
2) 100% margin on open positions of stock.It is just like a T2T.

🔹You can not do Intra day trade in the stock. It means that you have to pay full amount when you buy the stock and you can sell stock only if you have in demat account.

🔹No speculation (Trading) is allowed in the stock. More clearly, some Brokers gives credit facilities for their client by keeping 35% OR 40% margin . Now it is compulsory to keep 100% margin.

🔹Some people are confused about 100% margin concept. If you have paid full amount of stock, then No margin is required. This 100% margin concept is for speculators (Traders) who do not pay full amount of stock and avails credit facilities from their Brokers.

🔹To control this speculation (Trading), Exchange has newly introduced ASM. People are having confusion about ASM because it is new. In coming days ASM will be familiar like T2T.

🔹That is why NSE write Trading is disabled in these stocks from 04.06.2018. It does not mean that stock will not trade from 04.06.2018 on Exchange. It means Speculation (Trading) on Margin in these stocks is disabled from 04.06.2018....

🔹Also Once these stocks are sold, Credit will be received as in Normal Course.

I think this will help you to clear the concept of ASM.