What is Graded Surveillance Measure (GSM)?
SEBI has introduced various surveillance measures to safeguard the interests of investors and enhance market transparency, including reducing price bands, periodic call auctions, and the transfer of securities to the Trade-to-Trade (T2T) segment as required.
The Graded Surveillance Measures (GSM) are used to monitor unrealistic price changes in stocks that do not align with a company's financial health and fundamentals like earnings, book value, etc. Securities are marked under GSM to alert investors to be cautious and diligent while dealing in them.
Surveillance happens in 4 stages:
| Stage | Trade & Settlement | Price Band | Additional Margin |
|---|---|---|---|
| I | 100% margin applicable | 5% or lower, as applicable | - |
| II | * 100% margin applicable * Trades settled on a T2T basis | 5% or lower, as applicable | An Additional Surveillance Deposit (ASD) of 50% of trade value will be collected from buyer as cash |
| III | * 100% margin applicable *Trading permitted once a week (every Monday/first trading day of the week) * Trades settled on T2T basis | 5% or lower, as applicable | An ASD of 100% of trade value will be collected from buyer as cash |
| IV | * 100% margin applicable *Trading permitted once a week (every Monday/first trading day of the week) * Trades settled on T2T basis | 5% or lower, as applicable | An ASD of 100% of trade value will be collected from buyer as cash |
* Only delivery-based trading (T+1 settlement) is permitted for stocks under the T2T segment; intraday trading is not allowed.
* Orders for securities under stages 2 to 4 have to be placed by contacting our customer care line.Still need help? Create Ticket
