What Are Surveillance Measures and the Risks Associated with Them?

Types of Surveillance Measures

1. Additional Surveillance Measure (ASM): Designed to address potential risks of price volatility or manipulation. Learn more: What is ASM?
2. Graded Surveillance Measure (GSM): Applies stage-wise restrictions on stocks deemed highly speculative. Learn more: What is GSM?
3. Enhanced Surveillance Measure (ESM): Targets securities with irregular trading patterns.
4. Inter Creditor Agreement (ICA): Applicable to companies undergoing financial restructuring.
5. Promoter’s Holding Pledged: Monitors securities where significant promoter holdings are pledged.

Risks Associated with Surveillance Measures

• Securities in the T2T segment require mandatory delivery-based settlement. Intraday trading is not allowed.
• If a T2T stock is bought, it cannot be sold on the same day; it must be sold on T+1 day. Learn more: What are T2T stocks?

• Strict price band limits (e.g., 5% or lower) are imposed to control volatility.
• These limits are typically applicable under measures like:
• LT ASM Stage 4
• All stages of GSM, ESM, and IBC

• Securities under surveillance may require higher margins:
• • 1. GSM Stage 2: 50% Additional Surveillance Deposit (ASD)
    2. GSM Stages 3 & 4, IBC Stages 1 & 2: 100% ASD

• These margins remain blocked by exchanges for extended periods.

• Illiquid stocks, defined by criteria such as low daily trade counts and volumes, are traded via periodic call auctions to manage volatility.

Stocks Transferred to the T2T Segment

• LT ASM Stage 4
• GSM Stage 2 and above
• ESM Stages 1 & 2
• IBC Stages 1 & 2

Conclusion