Regarding ASM a bit clarity
ASM is implemented based on an objective dynamic criteria covering the following parameters:
a) High Low Variation
b) Client Concentration
c) No. of Price Band Hits
d) Close to Close Price Variation
e) PE Ratio
f) Market Capitalisation
Regulators are NOT bound to publish the reason of moving any security under ASM, but certainly they found Granules to be meeting ONE of above criteria.
Granules is currently under STAGE I and surveillance actions applicable for them are following:
They will be moved to Stage II, if regulators are not satisfied with parameters followed during current stage
- The shortlisted securities shall be further monitored on a pre-determined objective criteria
and would be moved into Trade for Trade settlement once the criteria gets satisfied. During Stage II, when the security is shifted to trade to trade settlement wherein the settlement shall be on gross basis i.e. delivery based.
Conclusion : Most of the retailers are surprised with Results beyond expectations and more on price movement post result. Tagging each price movement with specific event is toughest (& impossible for me) job. I understand that learned people are following limited approach to ensure that Granules doesn’t move to ASM Stage II or further… it will make their life tough… till we move out of ASM, its good to consolidate, gather more positives (We had first MUPS approval today & expect commercialization and launch later in current FY itself), which will certainly make the fundamentals more stronger for next upmove