New Delhi, Sept 27 (KNN) Exchanges have extended the short-term additional surveillance measure (ST-ASM) framework to SME stocks to enhance market integrity and safeguard the interest of investors.

The framework for SME stocks would be effective from 3 October, 2023. 

The move was taken after a joint surveillance meeting with market regulator the Securities and Exchange Board of India (SEBI).

Market players said the curbs will clamp down on speculative activity and attract serious buyers.

However this latest curbs imposed on companies that are traded on the small and medium enterprises (SME) platform could apply brakes on rising volumes. 

The average daily turnover (ADTV) for BSE's SME segment has shot up three times from Rs 28.4 crore in February to Rs 85.2 crore last month, indicating growing investor and trader interest. 

Similarly, NSE's Emerge platform for SME companies has witnessed over 3x year-on-year growth in ADTV to Rs 67 crore for the fourth month ending July 2023.

KNN Bureau