Cochin Shipyard, RVNL, IREDA among 7 PSU stocks in ASM framework. Details here

Seven Public Sector Undertaking (PSU) stocks, including Cochin Shipyard, Rail Vikas Nigam Ltd (RVNL), and Indian Renewable Energy Development Agency Ltd (IREDA), have been incorporated into the long-term Additional Surveillance Measure (ASM) framework.
The move by the Securities and Exchange Board of India (Sebi) aims to enhance market integrity and protect investor interests amid growing volatility in these stocks.
Previously, PSUs were exempt from this surveillance, but the decision to include them follows a review by the NSE and Sebi during their Joint Surveillance Meeting on September 20, 2024.
The ASM framework is designed to alert investors about stocks exhibiting unusual price variations and trading volumes. The amended framework became effective on September 23, 2024.
In early trading, reactions to this announcement were mixed. While shares of Cochin Shipyard were up by 0.72% at Rs 1,859.80 at 10:50 am, other stocks like RVNL and IREDA faced declines of 1.58% and 0.77%, respectively.
The varying responses highlight the market’s uncertainty regarding the implications of being placed under ASM.
The ASM framework classifies stocks based on several parameters, including price volatility and delivery percentages, aiming to encourage caution among investors.
For those holding shares in companies now under ASM, it is crucial to exercise diligence. The framework serves as a reminder to assess the underlying fundamentals and market conditions before making investment decisions.
For investors, being included in the ASM framework means closer scrutiny of these stocks. It may lead to increased volatility, making short-term price movements more pronounced.
Investors should consider setting tighter stop-loss orders and conducting thorough research on these companies’ financial health and market position.