Last week, Securities and Exchange Board of India (Sebi) imposed Additional Surveillance Measures (ASM) on 109 stocks.

The move is mainly aimed at checking any abnormal rise in stock prices that is not commensurate with the financial health of companies.

Experts such as Rajnikant Patel, former MD & CEO, BSE and Deena Mehta, MD, Asit C Mehta Investment.

ASM is a kind of caution list for future investors and stocks in the list are identified by an algorithm, Rajnikant Patel, former MD & CEO, BSE, told CNBC-TV18.

Investors should not get panicked by inclusion of stocks in the ASM list and neither should the company, said Patel, adding that it is more an action against the market behaviour than company’s behaviour.

It is not a new framework because the measures that come under it were already there, but now Sebi has put them into structured framework and into a step by step escalation point matrix, said Deena Mehta, MD, Asit C Mehta Investment.

First Published:Jun 13, 2018 11:57 AM IST