GSM List
List of securities that are currently in the GSM (Graded Surveillance Measure) list because of certain market-based parameters
COMPANY NAME | SYMBOL | ISIN | STAGE | TIME |
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What is GSM?
GSM stands for Graded Surveillance Measure. GSM, introduced in 2017, is an initiative by SEBI to protect investor’s interests and enhance the market’s integrity. When a stock is put under GSM, it is subjected to enhanced monitoring and surveillance based on predetermined criteria. GSM is applicable both in NSE and BSE.
Purpose of GSM:
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The main objective of GSM is to protect investors from excessive speculation and manipulation in volatile securities.
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To promote transparent and fair-trading practices in the country.
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To reduce market abuse and manipulative trading practices that can distort market prices.
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The GSM framework suggests market participants be extra careful and cautious while dealing in these securities since chances are likely that the investor may incur a loss.
There are four stages under the GSM list in which stocks are categorised. The exchange will assign the security to a specific stage based on price movement and predetermined objective criteria. When security reaches a certain level, it will trigger the appropriate surveillance action. These four surveillance actions have been listed below:
| Stage | Surveillance Actions |
|---|---|
| I | Applicable margin rate shall be 100% And price band of 5% or lower as applicable |
| II | Trade for trade with a price band of 5% or lower as applicable and Additional Surveillance Deposit (ASD) of 50% of trade value to be deposited by the Buyers |
| III | Trade for trade with a price band of 5% or lower as applicable and Trading permitted once a week (Every Monday/1st trading day of the week) And ASD (100% of trade value) to be deposited by the buyers |
| IV | Trade for trade with a price band of 5% or lower as applicable and Trading permitted once a week (Every Monday/1st trading day of the week) And ASD (100% of trade value) to be deposited by the buyers with no upward movement. |
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Implications for Investors:
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Increased margin requirements and ASD can lead to increased trading costs for investors.
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TFT and price bands can reduce liquidity in the stocks, making it more difficult to buy or sell them
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Investors should do proper research and understand the risks linked with trading in these scrips before making any investment decision.
