There has been a lot of turmoil in the stock market in the last few days, especially regarding the shares of Aadi Group. Shares of Adati Green Energy and Adati Energy Solutions have been placed under Stage 1 Short-Term Additional Surveillance Measures (ASM Stage-1) on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). This step has been taken after the US prosecution accused Adati Group Chairman Gautam Adati and his nephew Sagar Adati of corruption and fraud.
What is ASM?
It is an initiative of the Securities and Exchange Board of India (SEBI) and stock exchanges, in which shares are placed in a short-term or long-term framework to protect the interests of investors.
Holding shares under ASM means traders cannot trade them using intraday leverage, and 100 percent of their trading value is held back as margin. It controls risky and speculative trades, thereby minimizing losses.
