Tejas Networks has been removed from the long-term Additional Surveillance Measure (ASM) framework stage 1. The changes would be applicable from the next trading day.

What Happened: The Tata Group company was put under the long-term ASM framework back in June. Before that, the stock was in the short-term ASM framework.

A stock is placed under the ASM framework by the stock exchange due to factors such as high-low price variation, client concentration, price band hits, close-to-close price variation, and the price-earnings ratio. These parameters are used by exchanges to identify stocks that may show unusual price movements or volatility.

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The Stage 1 ASM framework, a regulatory measure by Indian stock exchanges, is designed to monitor and control such volatility. When a stock is placed in Stage 1 ASM, it undergoes stricter scrutiny, and investors are required to meet a 100% margin requirement for trades.

The goal is to prevent excessive speculative trading and safeguard market integrity by imposing these controls. A stock in Stage 1 ASM is also subject to a daily price band of 5%, further curbing rapid price fluctuations. Stocks remain under the ASM framework until their price behaviour normalizes and they no longer meet the criteria for heightened scrutiny.

Earlier in the month, the company announced the inauguration of its Center of Excellence for Wireless Communications at their Bangalore Headquarters by Union Minister Jyotiraditya Scindia. During the event, the Minister also launched the company’s indigenously designed 32T32R Massive MIMO radio.

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