Refex Renewables and 4 other stocks that have been included in LT ASM framework

The Long-term Additional Surveillance Measure (LT ASM) is a regulatory framework introduced by SEBI and Indian stock exchanges to monitor and manage risks in stocks that exhibit continuous abnormal trading patterns. This framework is designed to protect investors and enhance market integrity by imposing stricter trading conditions on selected securities for an extended period.

Criteria for Inclusion in LT ASM

Stocks are selected for the Long-term Additional Surveillance Measure (LT ASM) list based on objective criteria jointly defined by SEBI and the exchanges.

These criteria include significant price swings (high-low and close-to-close variations over defined periods), abnormal trading volume fluctuations, high client concentration (such as the top 25 clients accounting for a large share of volume), differentiated market capitalization thresholds, low diversity among traders (few unique PANs), low delivery percentage, and extremely high or volatile price-earnings (PE) ratios.

Stages of LT ASM

LT ASM (Long-Term Additional Surveillance Measure) is applied in steps. As a stock moves through each step, trading restrictions become stricter to help control unusual price movements or speculation.

• Stage I: 100% margin requirement from T+3 days; price band may be reduced.
• Stage II: Further reduction in price band; continued 100% margin.
• Stage III: Additional price band reduction; continued 100% margin.
• Stage IV: Settlement on a gross basis (trade-to-trade), 100% margin, and a restrictive price band (e.g., 5%). For derivative stocks, new contracts are not issued, and existing contracts are settled as per expiry.

Here is the list of stocks that have been shortlisted in the Long-Term ASM Framework:

NACL Industries Ltd

NACL Industries Ltd is a leading Indian agrochemical company focused on crop protection, manufacturing and selling pesticides, insecticides, fungicides, herbicides, and plant growth regulators (PGRs) as both technicals (active ingredients) and formulations, serving farmers across India with a strong distribution network and commitment to agricultural advancement, and is now part of the Murugappa Group. 

On December 02nd, the company was included in the LT-ASM stage IV Framework by the stock exchanges.

Refex Renewables & Infrastructure Ltd

Refex Renewables & Infrastructure Ltd (RRIL) is a leading Indian renewable energy firm, part of the larger Refex Group, specialising in solar power development (EPC services, rooftop, ground-mounted, solar pumps) with a history rooted in silicon manufacturing (formerly Monsanto Electronic Material Co.). They provide complete solar solutions, from design to maintenance, serving residential, commercial, and government clients across India.

On December 02nd, the company was included in the LT-ASM stage I Framework by the stock exchanges.

Auro Laboratories Ltd

Auro Laboratories Ltd. is an Indian pharmaceutical company, established in 1992, specializing in manufacturing Active Pharmaceutical Ingredients (APIs) and intermediates, particularly focusing on anti-diabetic drugs like Metformin HCl, with global exports and contract manufacturing services. Headquartered in Mumbai, with a key plant in Tarapur, they adhere to cGMP norms, serving markets in Asia, the Middle East, and Europe.

On December 02nd, the company was included in the LT-ASM stage I Framework by the stock exchanges.

Dhanashree Electronics Ltd

Dhanashree Electronics Ltd is an Indian company based in Kolkata that manufactures and supplies a wide range of electrical and electronic products, including LED and CFL lighting, fans, and audio products. Established in 1987, the company also engages in services like installation, marketing, and trading of international brands, and has ventured into areas like solar lighting and professional audio.

On December 04th, the company was included in the LT-ASM stage I Framework by the stock exchanges.

Yug Decor Ltd

Yug Decor Ltd. is an Indian company established in 2003, specialising in manufacturing and exporting various adhesives (like wood glue, shoe glue, and synthetic binders) under the brand YUG-COL, serving furniture, footwear, and construction industries globally, and also promoting interior design concepts via Yug-Designs. The company is listed on BSE SME and known for its diverse product range in the chemicals/adhesives sector.

On December 04th, the company was included in the LT-ASM stage I Framework by the stock exchanges.

Written by Sridhar J 

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