In News: The National Stock Exchange (NSE) placed Adani Enterprises, Adani Ports, and Ambuja Cements under the additional surveillance mechanism (ASM) in the wake of accusations of stock manipulation and fraud levelled against the group by New York-based short seller Hindenburg Research.
Additional surveillance mechanism (ASM):
The ASM was introduced in 2018 with the intention to protect investors from market volatility and unusual changes in share price.
It is placed on securities with surveillance concerns based on objective parameters viz. Price / Volume variation, Volatility etc. in addition to other surveillance measures.
The shortlisting of securities for placing in ASM is based on criteria that are jointly decided by the Securities and Exchange Board of India (SEBI) and exchanges, covering the parameters of “high low variation, client concentration, PE, close to close price variation, market capitalisation, volume variation, delivery percentage, and number of unique PANs”.
An ASM shortlisting signals to investors that the stocks have seen unusual activity.
The shortlisting of securities under ASM is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company / entity.
National Stock Exchange (NSE)
NSE was incorporated in 1992.
It was recognised as a stock exchange by SEBI in 1993 and commenced operations in 1994
NSE was the first exchange in India to implement electronic or screen-based trading
NSE is counted as one of the world’s largest exchanges and a catalyst for driving India’s economic growth.
The products on the Exchange are organized into 3 asset classes for trading: Capital market for the listing and trading of equities, fixed income securities and the derivatives market.
