According to a circular issued by the National Stock Exchange of India, Patanjali Foods is set to exit the additional surveillance framework under the insolvency and bankruptcy code starting this Wednesday.
The Additional Surveillance Framework (ASM) is a component of the measures implemented by the Securities and Exchange Board of India and stock exchanges to bolster market integrity and protect the welfare of investors. The ASM framework relies on specific criteria, such as price, volume fluctuations, and volatility, to achieve its objectives.
Stocks are categorized into two surveillance frameworks, primarily based on their time horizon: short-term and long-term.
The selection of stocks for inclusion in the ASM list serves as a cautionary signal to investors regarding unusual price movements. Implementing specific trading restrictions aims to prevent potential volatility and protect investors from losses.
Patanjali Foods’ shares on the NSE closed 4.5% higher at INR 1,367.90 on Tuesday.
