What Does GSM Mean?
By: Akriti Tomar | Date : Dec 7, 24
Introduction
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 Surveillance Actions
The GSM framework involves four stages of increasing surveillance intensity, depending on the stock’s risk profile:
| Stage | Surveillance Actions |
| 1 | 100% margin rate and a price band of 5% or lower as applicable. |
| 2 | Trade-to-Trade (T2T) with a 5% price band or lower, and an Additional Surveillance Deposit (ASD) of 50% of the trade value to be deposited by buyers. |
| 3 | Trade-to-Trade (T2T) with a 5% price band or lower, and an ASD of 100% of the trade value to be deposited by buyers. |
| 4 | Trade-to-Trade (T2T) with a 5% price band or lower, ASD of 100%, and no upward price movement allowed. |
Important Points to Note
- Buying Restrictions:
- Stocks in GSM Stage 2 and above are subject to buying restrictions.
- For more information, see Why is buying restricted for GSM Stage 2 and above stocks?
- Complementary Measures:
SEBI has also introduced the Additional Surveillance Measure (ASM) to further strengthen investor protection. To learn more, see What is ASM (Additional Surveillance Measures)?
Did You Know?
Even in GSM, corporate actions like dividends, bonuses, or stock splits remain unaffected. Shareholders continue to receive these benefits regardless of the stock’s GSM status.
For the latest updates on GSM stocks, visit the NSE and BSE websites.
Table of content
Categories
Open Demat Account 
Related Posts
-
What is the Minimum Amount Required to Start Investing?
No minimum amount is required to start investing. Each individual fund will have its own...
-
Net Asset Value (NAV) Explained: How It Affects Your Investments?
Net Asset Value (NAV) Explained: How It Affects Your Investments? Disclaimer: Investments in the securities...
-
What is Recreate Positions?
If the creator wants all his subscribers to have the same positions or let’s say...
-
Understanding Share Buyback: Benefits, Risks, and its Financial Impact
Understanding Share Buyback: Benefits, Risks, and its Financial Impact Disclaimer- Investments in the securities market...
Filing Complaints on SCORES (SEBI) – Easy & Quick
- Register on SCORES Portal (SEBI)
- Mandatory details for filing complaints on SCORES:
- Name, PAN, Address, Mobile Number, E-mail ID
- Benefits:
- Effective Communication
- Speedy redressal of the grieva`nces

IT'S TIME TO HAVE SOME FUN!
Your family deserves this time more than we do.
Share happiness with your family today & come back soon. We will be right here.
Investment to ek bahana hai,
humein to khushiyon ko badhana hai.
E-mail
askus@rmoneyindia.com
Customer Care
+91-9568654321




