Yes. When a stock is placed under surveillance, the exchange introduces specific trading restrictions depending on the surveillance framework and the stage the stock is in.
The most common restriction is higher margin requirements. Normally, you may need to put up 20–30% of the trade value as margin. For stocks under surveillance, this can go up to 100% meaning you need the full trade value available in your account before you can buy.
In more advanced stages of surveillance, additional restrictions may apply:
- Trade-to-trade settlement every trade must result in actual delivery, intraday trading is not allowed
- Only existing holders can sell, no fresh buying is permitted
- The stock may be shifted to a weekly or monthly trading session instead of daily
These restrictions are set by the exchange, not by Samco. Samco applies them on the platform as directed.
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