The use of P/E ONLY to decide on ASM list has been discarded and exchanges have come up with more solid (read detailed & confusing) framework of criterion under which a stock will be placed in ASM
High low price variation (based on corporate action adjusted prices) of 200% or more in the last three months AND Concentration of top 25 clients in the last three months is 30% or more. OR
High low price variation (based on corporate action adjusted prices) of 200% or more in the last three months AND number of price band hits (upper or lower) in the last three months is 30% or more. OR
Close to close price variation (based on corporate action adjusted prices) in the last 30 trading days is 100% or more AND PE negative or more than 30 AND the concentration of top 25 clients in the last one month is 30% or more. OR
Close to Close Price variation (based on corporate action adjusted prices) in 365 days greater than 100% AND High - Low Variation in 365 days greater than 200% AND Market Cap above Rs. 500 Crores AND High Low Variation in 90 trading days greater than 50%. OR
Close to Close Price variation (based on corporate action adjusted prices) greater than or equal to 50% in last three months AND Concentration of top 25 clients in a quarter in the scrip is greater than or equal to 50% AND 5 or more clients out of the top 25 clients having 50 %
or more of their trading activity in a scrip AND Market Cap above Rs. 500 crore.
Scrips excluded from ASM :
Public Sector Enterprises and Public Sector Banks (How lovely)
Securities already under Graded Surveillance Measure (GSM)
Securities on which derivative products are available
Securities already under Trade for Trade
Public Sector Enterprises and Public Sector Banks (How lovely)
Securities already under Graded Surveillance Measure (GSM)
Securities on which derivative products are available
Securities already under Trade for Trade
The list of scrips shortlisted for action under ASM shall be disseminated in
advance (T day). In this regard, the imposition of 5% price band will be
effective from next trading day (T+1 day) and imposition of 100% margin will
be effective from T+5 trading days.
advance (T day). In this regard, the imposition of 5% price band will be
effective from next trading day (T+1 day) and imposition of 100% margin will
be effective from T+5 trading days.
Surveillance action post 1 month after inclusion in ASM: Scrips having PE ratio greater than 100 shall be placed in the Trade for Trade
segment
segment
Scrips having PE Ratio less than 10 (PE ratio is between 0 to 10) shall be moved out of ASM framework and close price shall become the base price for
subsequent reviews.
subsequent reviews.
Scrips having PE ratio less than PE ratio of Nifty 500 Index shall be moved out
of ASM framework in case such scrips does not meet entry criteria stated
above
of ASM framework in case such scrips does not meet entry criteria stated
above
Scrips having PE ratio less than 2 times PE ratio of Nifty 500 Index shall be
continue to remain in ASM, however such scrips shall be moved out of Trade
for Trade segment.
continue to remain in ASM, however such scrips shall be moved out of Trade
for Trade segment.
