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Stocks Under ASM list – Explained



Stocks under ASM list

In recent years, incidents of insider trading, and market manipulation have highlighted the necessity for enhanced surveillance measures. Here, The ASM (Additional Surveillance Measure) list comes into role. It is the regulatory tool implemented by SEBI, to monitor stocks and detect speculative activities. When stocks are put in ASM, it means they have experienced some unexceptional volatility in prices.

Let’s understand why stocks are put under ASM, what it means and how it impacts investors.

Why stocks are placed under the ASM list?

The primary decision to place stocks on the ASM list is to protect investors from unfair trade practices. Some companies or individuals try to manipulate stock prices and spread false information to deceive investors into wrong decision-making.

The inclusion of stocks under the ASM list serves as a warning for investors and market participants. This indicates the risk associated with trading in a particular stock. Additionally, this promotes informed decisions making and prudent trading practices.

SEBI closely monitors activities and take significant steps to safeguard investors’ interest.

What are the criteria for examining shares?

When a stock experiences unusual trading behavior, it can be a signal of unfair activities. To protect investors’ interests and ensure market stability, stocks are put under the ASM list as a measure.

  1. Price movements – Stocks that experience sudden price movements are closely inspected. These rapid and drastic price fluctuations can signal market manipulation or any speculative activities that need surveillance.
  2. Trading volumes – Stocks with unusual trading volumes, relative to their market capitalization may be put under the ASM list. This ensures that these price movements should not give any investor an unfair advantage
  3. Client Concentration – A high volume of trades involving fewer market participants can be a signal to evaluate stock closely. This could indicate market manipulation attempts. Furthermore, they can be added to the ASM list.
  4. News and Announcements – News, announcements, or any corporate action may impact the share price. Sudden price movements followed by news can be a signal to surveil stock and may result in the inclusion of stock in the list.

What are the measures taken?

After the stock is put on the list, the SEBI takes certain measures to safeguard investors and maintain market stability.

  1. Circuit limitations – If any stock’s prices experience extreme, price volatility, SEBI puts a circuit limit on the stock. These limits restrict the maximum rise or fall in stock price within a trading session. If a stock has a 5% upper limit, the price cannot rise by more than 5% in a single trading session. Conversely, if a stock has a 5% lower limit, its price cannot fall by more than 5% in a single trading session.
  2. Margins at a rate of 100% –Another major measure taken when stocks are under the ASM is the 100% margin requirement for trading in stocks. This reduces the risk of losses in case of unusual price volatility.
  3. Trading Restrictions – When stocks are under ASM, trading restrictions are imposed. This means investors are not allowed to execute intra-day trades. This aims at reducing speculative activities and controlling volatility. As volatility may increase due to rapid trading in ASM stocks.

How does it impact Investors?

By taking certain measures, SEBI maintains market integrity and stability in the market.

  1. Investors’ confidence – SEBI safeguards investors’ interest by reducing the probability of market manipulation and price movements by imposing circuits and trading restrictions.
  2. Reduced volatility – When SEBI imposes circuits on stocks, it restricts price movements. This reduces the volatility of the price and prevents it from extreme fluctuations.
  3. Reduced leverage – The imposition of a higher margin (100%) on ASM stocks can reduce leverage in trades. This helps to manage higher risks associated with stocks.
  4. Enhanced protection- These measures protect investors from losses in case of manipulative price movements.

Adani stocks under ASM list – Case Study

Adani Wilmar share prices triple, becomes best-performing IPO in Asia

In 2022, Adani shares had performed exceptionally, giving high returns and all its stocks were in rally. Adani Willmar’s share got doubled in just two months since its listing. The share reached its all-time high of ₹504.65 per share on NSE. Later, hit another fresh high on 25th March 2022 and continued its upward trend.

However, Till 24th January 2023, the Adani group was in 3rd position with a net worth of $120 billion but after the Hindenberg report alleging price manipulation by the Adani group, the company’s rank dropped to 15th, losing Rs 7 lakh crore in just 5 trading sessions.

3 Adani Group stocks again placed under short-term surveillance framework

Due to the Hindenberg report, Adani Enterprises, Adani Power, and Adani Wilmar were placed under the short-term ASM list on 13th March 2023. Adani Green and Adani Energy were put under the ASM framework stage 2 on the long-term ASM list.

In Summary

ASM list is a tool used to enhance surveillance, maintain market stability, and protect investors’ interests. By placing stocks in ASM, SEBI alerts investors about risks associated with investing in particular stocks. These stocks are closely monitored by SEBI to prevent market manipulation.

Also, Read – A business case study of Tata Power and Adani Power

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Finance World

Why Muthoot Finance is not affected by the small cap and mid cap fall?



This week, if you’ve been keeping an eye on the stock market, you might’ve noticed something unusual. While the small cap and mid cap markets took a serious dive, Muthoot Finance seemed to just avoid it, falling by a mere 2%. So, what’s their secret?

What is the business of Muthoot Finance?

First up, Muthoot Finance has a strong foothold in gold loans. Now, why does this matter? Well, when other investments seem risky, people tend to fall back on gold because it’s considered a safer bet. With gold prices staying high, Muthoot’s gold loan business is like a stable ship in a stormy sea.

Muthoot Finance target price by Kotak

Kotak Institutional Equities is pretty optimistic about Muthoot, recommending a “buy” with a target of Rs 1,500. They think Muthoot is in a prime spot to grab a bigger slice of the gold loan market. Plus, with some Non-Banking Financial Companies (NBFCs) hitting a rough patch, Muthoot has a clear ground to expand and grow further. Unlike NBFC, Muthoot has a strong ground presence with offices and branches, they have physical repo with their customers, unlike NBFC who operate from AC offices.

New Friends and New Frontiers

Muthoot isn’t just sitting pretty with its gold loans; it’s also making moves. It teamed up with Evfin to finance electric two-wheelers across India. And there’s more – Muthoot FinCorp has brought Veefin Solutions on board to kick off supply chain finance operations. This means they’re planning to lend a hand to small and medium businesses, helping them keep the wheels turning. So, its a great news that Muthoot is expanding into fields that are not dependent on gold loans alone.

Spreading Their Wings

Muthoot Microfin, a part of the Muthoot Group, is pushing into new territories too. They’ve just set foot in Telangana and have their sights set on Andhra Pradesh next. This move is about bringing more people into the financial fold, especially in places where banking services might be hard to come by. This gives an edge to Muthoot over banks and NBFC.

Are you wondering whether to invest in Muthoot Finance or Manappuram Gold? Take a look at this:

So, What’s the Deal?

While the market’s mood swings have sent some companies into a pit, Muthoot Finance has managed to stay stable. Thanks to its focus on gold loans, strategic partnerships, and expansion plans, it’s not just surviving; it’s set to thrive. So, while the rest of the market might be catching its breath, Muthoot is marching on, steady as ever.

Keep following us for more such latest news on TradeAlone.

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Finance World

Infibeam Avenues Ltd expands into the US Market with an Acquisition



Hello, digital pioneers and fintech enthusiasts! Let’s dive into a groundbreaking announcement for Infibeam. Infibeam Avenues Ltd, an AI-powered financial technology, is embarking on an exciting journey by acquiring a 20% stake in XDuce. XDuce is a mastermind in enterprise Application and AI development based in the United States. This bold move involves an investment of USD 10 million. This also marks a significant milestone in Infibeam Avenues Ltd’s global expansion narrative.

XDuce: A Hub of Innovation

Nestled in the heart of New Jersey, XDuce boasts a team of over 150 software developers. They’re a team behind the curtain for marquee clients like Bank of America and Morgan Stanley, to name a few. XDuce’s expertise in business application implementations and transformation is nothing short of legendary in the financial and insurance sectors of North America.

A Fusion of Giants

So, what happens when Infibeam Avenues Ltd and XDuce comes together? Infibeam Avenues Ltd wants to merge it’s AI Solutions and CCAvenue Payments business into the network that XDuce has built. This collaboration is about expanding business footprints, revolutionizing how AI-driven technologies are employed in fraud detection, authentication, and risk identification in the financial sector of the US.

Redefining Financial Technology

Imagine a world where transaction fraud is no longer a looming threat, thanks to state-of-the-art AI technologies. That’s the vision Mr. Jay Dave, CEO of XDuce, and Mr. Rajesh Kumar SA, CEO of Phronetic.AI, share. By integrating PhroneticAI abilities with XDuce’s solutions, they will offer businesses and consumers in the US with security and efficiency.

The Road Ahead

According to Mr. Vishwas Patel, Joint Managing Director of Infibeam Avenues Ltd, international business currently contributes less than 10% to the company’s total revenue. But with strategic moves like this, they’re aiming for international business to soar to 30% of total revenue in the coming years.

Infibeam Avenues Ltd at a Glance

Infibeam Avenues Ltd is at the forefront of offering digital payment solutions and enterprise software platforms across the globe. With a transaction worth INR 4.5 trillion (US$ 54 billion) processed in FY23, and a client base of over 10 million. Spread across digital payments and enterprise software platforms, they’re leading digital revolution.

Wrapping Up

The strategic investment in XDuce is a bold step towards Infibeam Avenues Ltd’s vision of global expansion and innovation.

Stay tuned with Tradealone, as we continue to follow this exciting journey of Infibeam Avenues Ltd. Stock price for Infibeam closed 7% up today. We also see a continues profit growth for Infibeam Avenues over the past 4 years. Although, we cant recommend a buy or sell call for the stock, however we feel this stock deserves your attention.

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Finance World

Satin Creditcare Expands its Reach by entering Telangana and Andhra Pradesh, stock has doubled so far this year



In a country where financial inclusion remains a major yet challenging goal, the expansion of services to underbanked regions marks a significant step forward. Satin Creditcare Network Limited (SCNL), a leading name in microfinance, announces its strategic entry into Telangana and Andhra Pradesh. This move not only amplifies SCNL’s presence to 26 states and union territories across India but also underlines its commitment to empowering the economically marginalized communities with vital financial services.

A Leap Towards Nationwide Financial Inclusion: SCNL’s mission to drive financial inclusion is more than just a business expansion; it’s a pledge to reach the unreached. The opening of two new branches in Telangana (Warangal and Huzurabad) and one in Kadiri, Andhra Pradesh, is a testament to SCNL’s dedication to making financial services accessible to all, especially in rural and semi-urban areas where banking facilities are scarce.

Why Telangana and Andhra Pradesh?

The choice of Telangana and Andhra Pradesh for SCNL’s latest expansion is strategic. Both states have shown promising economic growth yet house significant populations that lack access to basic financial services. By stepping into these states, SCNL aims to fill this gap, offering microfinance solutions that can serve as a catalyst for economic empowerment and sustainable development. Moreover, Telangana is a fast growing hub for Pharma industry as the state capital Hyderabad leads the way.

SCNL’s Blueprint for Empowerment

SCNL’s approach to empowerment through financial inclusion is holistic. Focused on rural India, with 76% of its operations dedicated to rural communities across 97,000 villages, SCNL is not just providing financial services but is also contributing to the rural economy’s growth. This expansion is a stride towards enabling access to credit for the underserved, thereby fostering an environment of economic resilience and growth.

A Message from the Leadership

Mr. HP Singh, Chairman cum Managing Director of SCNL, remarks, “Our expansion into Telangana and Andhra Pradesh is a significant milestone in our journey towards a financially inclusive India. It’s not merely about increasing our geographical footprint; it’s about touching lives, empowering the marginalized, and contributing to the nation’s economic fabric. We’re here to make a difference, one individual, one community at a time.”

Ashirvad Microfinance is a fast growing company as well. Check it out if you are interested.

Beyond Expansion – A Look at SCNL’s Innovations

SCNL’s innovations extend beyond traditional microfinance. The institution’s portfolio includes loans to MSMEs, affordable housing loans through its subsidiary Satin Housing Finance Limited (SHFL), and the commencement of MSME business through Satin Finserv Limited (SFL). These initiatives demonstrate SCNL’s commitment to diversifying financial solutions that cater to various needs of the underserved.

The Road Ahead for SCNL

As SCNL carves new paths in Telangana and Andhra Pradesh, the future looks promising. This expansion is not just about growth but about deepening the impact of financial inclusion across India. With continued innovation and a steadfast commitment to its mission, SCNL is poised to create significant strides in empowering communities and fostering economic development across the country. Moreover, the stock price for Satin Creditcare has almost doubled in the last one year.

Conclusion: SCNL’s expansion into Telangana and Andhra Pradesh marks a new chapter in its mission to facilitate financial inclusion across India. By reaching out to the economically marginalized sections of society, SCNL strengthens its role as a catalyst for economic empowerment and sustainable development. As we watch this journey unfold, the prospects for a financially inclusive India appear brighter than ever. Despite that we do not see any positive signs from the revenue and profit growth of the company over the last 5 years. Thus, we feel that investors must be cautious while investing here.

Remember that microfinance companies also face competitions from the major banks. However, as this move is towards uncharted regions of Telangana and Andhra, we do not think that the banks would pose any risk to Satin Creditcare.

Call-to-Action: We invite you to join the conversation: How do you think SCNL’s expansion will impact financial inclusion in Telangana and Andhra Pradesh? Share your thoughts and insights in the comments below. Let’s discuss how financial empowerment can transform lives and communities. Also, please follow Tradealone for more such latest updates.

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