ESM stands for Enhanced Surveillance Measure. It is applied to smaller listed companies typically those on the SME platform or companies with a small market cap that show signs of price manipulation or sudden unexplained price surges. The key difference between ESM and ASM or GSM is the type of […]
What is GSM?
GSM stands for Graded Surveillance Measure. It is a stricter surveillance framework compared to ASM and is applied to stocks where weak company fundamentals are combined with unusual price activity, typically stocks of small companies whose share prices are rising sharply despite poor financial performance. GSM has six stages, with […]
What is ASM?
ASM stands for Additional Surveillance Measure. It is a framework introduced by NSE and BSE to monitor stocks that show abnormal price and volume movement stocks that are rising or falling too sharply without any clear business reason behind it. When a stock is placed under ASM, it does not […]
What if a stock I am interested in suddenly comes under surveillance?
If a stock you were planning to buy suddenly comes under surveillance, it is worth pausing before placing the order. Surveillance is the exchange’s way of signalling that something about the stock’s trading behaviour is not normal and in many cases, that signal is worth taking seriously. Before proceeding, check […]
Can I sell my holdings in a stock under surveillance?
In most cases, yes. Selling your existing holdings is generally permitted even when a stock is under surveillance. The exchange’s primary goal is to control fresh speculative buying not to prevent existing investors from exiting their positions. However, in certain advanced stages of surveillance frameworks like GSM, even selling may […]
How long does a stock remain under surveillance?
There is no fixed timeline. A stock can remain under surveillance for a few weeks or several months; it entirely depends on the exchange’s review and whether the stock’s trading behaviour returns to normal. Exchanges review surveillance stocks periodically. If the unusual activity that triggered the flag has stopped and […]
What happens if I place an order for a stock under surveillance?
If you place a buy order for a stock under surveillance on Samco, one of the following will happen depending on the stage of surveillance: Your order may go through but require a higher upfront margin than usual. If your available balance does not cover this, the order will be […]
Are there restrictions on trading stocks under surveillance?
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 […]
What are the common reasons a stock is flagged by surveillance?
Exchanges look at a combination of factors when deciding to flag a stock. The most common reasons are: Unusual price movement – The stock price rises or falls sharply over a short period with no news, results, or business development to explain it High trading volume without reason – A […]
How does Samco monitor stocks for unusual activity?
Samco does not monitor stocks independently for surveillance. This is done at the exchange level by NSE and BSE using their own surveillance systems that track price movements, trading volumes, and patterns across all listed stocks every single day. When the exchange flags a stock and places it under a […]