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Introduction Stocks in GSM Stage 2 or higher are subject to strict regulatory measures to safeguard market integrity and reduce speculative trading risks. The primary reasons for buying restrictions include: Mandatory Additional Surveillance Deposit (ASD): Buyers must deposit an ASD of 100% (or more) of the trade value. This deposit remains locked by the exchange for a minimum period of two months, even after the stock is sold. Risk Mitigation: GSM Stage 2 and above stocks are often high-risk due
Read MoreIntroduction The Graded Surveillance Measure (GSM) is a regulatory framework introduced by the Securities and Exchange Board of India (SEBI) in collaboration with stock exchanges. Its primary goal is to enhance market integrity and safeguard the interests of investors by applying stricter trading norms to specific stocks. The list of stocks under GSM can be tracked on the NSE GSM Report (WEB) and the BSE GSM Report (WEB) for detailed guidelines, refer to the NSE FAQ (PDF). GSM Stages and
Read MoreWhat Are Surveillance Measures and the Risks Associated with Them? Surveillance measures are regulatory actions introduced by SEBI and stock exchanges to monitor and control the trading of securities. These measures aim to safeguard investors, prevent market manipulation, and maintain overall market integrity. When a security falls under surveillance, traders are notified of the applicable restrictions and actions before placing an order. Types of Surveillance Measures Additional Surveillance Measure (ASM): Designed to address potential risks of price volatility or manipulation.
Read MoreWhat are Trade-to-Trade (T2T) Stocks? Trade-to-Trade (T2T) is a special segment introduced by stock exchanges to monitor and regulate highly speculative stocks or those with suspected price manipulation. This mechanism ensures market integrity by imposing stricter trading norms. Key Features of T2T Stocks Delivery-Based Trading Only: All buy and sell transactions must be settled through delivery. Intraday trading is strictly prohibited in this segment. Transaction Restrictions: If a T2T stock is purchased, it cannot be sold on the same trading
Read MoreWhat is ASM? Additional Surveillance Measures (ASM) is a regulatory framework introduced by the Securities and Exchange Board of India (SEBI) in collaboration with stock exchanges to enhance investor protection and maintain market integrity. Stocks are categorized under ASM based on defined criteria, as detailed in NSE FAQ (PDF). ASM classifications include: Long-term ASM Short-term ASM For the latest list of stocks under the ASM category, visit the NSE website. Key Surveillance Actions for ASM Stocks 1. Trade-to-Trade (T2T) Movement:
Read MoreAccording to SEBI circular dated 19th Nov, 2019, all the brokers are now required to collect and report margins in the cash segment. This is currently applicable in the derivatives segment. A flat 20% upfront margin needs to be collected in the cash segment. Let’s find out the reason why SEBI made this move. Earlier brokers allowed clients to buy/sell stocks for delivery without asking them for upfront margins or delivery. The client was required to fund the account until
Read MoreSEBI has, from time to time, put in place various risk containment measures to address the risks involved in the cash and derivatives market. With a view to keeping up pace with the changing market dynamics and bringing more efficiency to the risk management framework, a comprehensive review of the margin framework was done and SEBI and Exchange have come up with new norms which can be checked from the following links NSE and SEBI Highlights No major changes in Cash Segment margins. Margins
Read MoreFrom December 1, 2020, the concept of peak margin reporting will be introduced. This will have a big impact on the intraday margin/limit that customers enjoy currently along with other changes. In this article, we shall first explain what the concept of peak margin means, and then examine how the Securities and Exchange Board of India’s (Sebi) new rules (introduced through circular dated July 20, 2020) will impact stock market participants. The concept of peak margin will apply to all
Read MoreAs per SEBI Guidelines, no margin is offered for trading. However, you can avail of the MTF facility or Hedging benefit for margin.
Read MoreOur RMS will square off your intraday positions 15 minutes before the market closes for NSE Segment including Currency. In the case of the commodity segment, your position will be squared off 30 minutes prior to market close. Once a client’s MTM reaches 80%, our RMS will square off the positions irrespective of the product type or the time.
Read MoreYes, you can change your position from Intraday to Carryforward. However, carry forward positions require you to have sufficient margins. You need to change the position at least 15 minutes before the market closes in the NSE segment including Currency. For the MCX segment, the same needs to be done 30 minutes before the market closes. This is when the auto square-off of the positions starts.
Read MoreYes, you can change your position from carryforward to intraday but only up to 15 times before the market closes for the day.
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