The ASM Full Form in Share Market is Additional Surveillance Measure. In essence, it’s a set of rules that are put in the stock exchanges that follow the guidelines from SEBI. Securities and Exchange Board of India (SEBI). The aim? To keep a watchful to monitor and control the way that certain stocks trade particularly those that are being unusually volatile or show erratic price movements. The concept behind ASM is to ensure that the market operates in a fair manner to reduce risk and be aware of investors by monitoring stocks that could be easily targets for price manipulation or speculative movements.
Significance of ASM in the Stock Market
ASM is a kind of market’s eye, ensuring that all is in order and that investors are secure. It pinpoints stocks that could be getting excessively exuberant, and is indicating that they may be manipulated or speculatively speculated upon too much. When it is able to intervene the early hours, ASM helps avoid drastic price fluctuations, calms excessive trading and helps keep the market on track.
Impact on Traders and Investors
Both for those who are buying and selling on a short-term basis and those seeking to invest over long-term investment, ASM shakes things up slightly. For traders who prefer fast buys and sales, could discover that they are paying more for trade and having trouble buying or sell as quickly as they did before. In the meantime, investors who are long-term should examine the market more closely and be cautious before jumping into stocks under the ASM watch. Even with the checks in place, things like dividends or stock splits continue to be normal for companies that fall that are under ASM.
