A new circular from the National Stock Exchange (NSE) extends the Additional Surveillance Measure (ASM) framework to Public Sector Undertaking (PSU) stocks, starting September 23, 2024. Previously, PSU stocks were exempt from this surveillance, allowing for unrestricted price movements that often resulted in significant rallies. Under the updated guidelines, PSU stocks will now be subject to close monitoring, with their price movements scrutinized for volatility. If excessive price fluctuations are detected, these stocks may be placed under various stages of the ASM framework. Once a stock reaches ASM Stage 4, tighter trading restrictions will be imposed, limiting further price movements. This regulatory shift is aimed at enhancing market integrity and protecting investors by preventing sudden, sharp price changes in PSU stocks. These measures align with existing surveillance mechanisms such as the Long-term ASM (LT-ASM), Short-term ASM (ST-ASM), Graded Surveillance Measure (GSM), and Enhanced Surveillance Measure (ESM), which have been used for other securities. The Securities and Exchange Board of India (SEBI) and the NSE continue to introduce such pre-emptive measures to ensure a more stable and transparent trading environment.
NSE
National Stock Exchange of India
Circular
Department: SURVEILLANCE
Download Ref No: NSE/SURV/64066
Circular Ref. No: 804/2024 Date: September 20, 2024
To All NSE Members
Sub: Extension of Surveillance Measures on Public Sector Undertaking (PSU) companies
Securities and Exchange Board of India (SEBI) and Exchanges in order to enhance market integrity and safeguard interest of investors, have been introducing various enhanced pre-emptive surveillance measures from time to time.
As per the extant framework, the exclusion criteria of the following surveillance measures included Public Sector Undertaking (PSU) companies:
1. Long-term Additional Surveillance Measure (LT-ASM) 2. Short-term Additional Surveillance Measure (ST-ASM)
3. Graded Surveillance Measure (GSM)
4. Enhanced Surveillance Measure (ESM)
The relevant Exchange Circulars issued to till date w.r.t the above-mentioned extant surveillance measures/frameworks are as under:
| Sr. No. | Surveillance Measure/Framework | Earlier Exchange Circulars |
| 1 | Long-term Additional Surveillance Measure (LT-ASM) | i. NSE/SURV/39265 dated October 27, 2018
ii. NSE/SURV/45111 dated July 22, 2020 iii. NSE/SURV/46557 dated December 04, 2020 iv. NSE/SURV/48506 dated June 04, 2021 v. NSE/SURV/52090 dated April 22, 2022 vi. NSE/SURV/63362 dated August 09, 2024 |
| 2 | Short-term Additional Surveillance Measure (ST-ASM) | i. NSE/SURV/39265 dated October 27, 2018
ii. NSE/SURV/46557 dated December 04, 2020 iii. NSE/SURV/52144 dated April 28, 2022 iv. NSE/SURV/58558 dated September 25, 2023 |
| 3 | Graded Surveillance Measure (GSM) | i. NSE/SURV/34262 dated February 23, 2017
ii. NSE/SURV/38389 dated July 20, 2018 iii. NSE/SURV/38638 dated August 17, 2018 iv. NSE/SURV/42790 dated November 29, 2019 v. NSE/SURV/59425 dated November 17, 2023 |
| 4 | Enhanced Surveillance Measure (ESM) | i. NSE/SURV/56948 dated June 02, 2023
ii. NSE/SURV/57609 dated July 18, 2023 iii. NSE/SURV/63361 dated August 09, 2024 |
As per Joint Surveillance Meeting of Exchanges and SEBI held on September 20, 2024, the above-mentioned extant surveillance measures/frameworks were reviewed, and it was decided to extend them to Public Sector Undertaking (PSU) companies.
Further, all other provisions of the above-mentioned Exchange Circulars shall remain unchanged.
The amended framework shall be applicable from September 23, 2024 and the list of PSU/other scrips shortlisted (if any) as per the amended framework shall be published separately.
In case of any further queries, you may write to us at [email protected].
For National Stock Exchange of India Limited
Amit Shinde
Chief Manager
Surveillance
