Graded Surveillance Measures (GSM) – shortlisting of Securities –
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1. |
Securities shall be shortlisted based on the pre-defined objective criteria. |
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2. |
List shall be periodically reviewed & published by the exchanges in a coordinated manner. |
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3. | Identification / review of securities for Graded surveillance measures shall be carried out every quarter. |
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4. |
In addition to existing Surveillance action being imposed from time to time, it may be noted that these securities shall be monitored for the price movement and based on the pre-determined objective criteria shall attract following additional graded surveillance measures:
Stage |
Surveillance Actions |
I |
Transfer to trade for trade with price band of 5% or lower as applicable |
II |
Trade for trade with price band of 5% or lower as applicable and Additional Surveillance Deposit (ASD) of 100% of trade value to be collected from Buyer |
III |
Trading permitted once a week trading and ASD 100% of trade value to be deposited by the buyers (Every Monday) |
IV |
Trading permitted once a week trading with ASD 200% of trade value to be deposited by the buyers (Every Monday) |
V |
Trading permitted once a month trading with ASD 200% of trade value to be deposited by the buyers (First Monday of the month) |
VI |
Trading permitted once a month with no upward movement in price of the security with ASD 200% of trade value to be deposited by the buyers (First Monday of the month) |
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Notes: -
- The list of securities moving from higher stage of Graded Surveillance Measures shall be informed to the market, vide notice time to time.
- Additional Surveillance Deposit (ASD) shall be paid only in form of cash and to be retained till review of the Graded Surveillance stages i.e. Quarterly review.
- This ASD shall not be refunded or adjusted even if securities purchased is sold off at the later stage within a quarter and also shall not be considered for giving further exposure.
- ASD shall be over and above existing margins or deposits levied by the Exchanges on transactions in such companies and shall be interest free.
- In case of default in payment of ASD, penal actions may be initiated against the trading member.
- In case the scheduled trading day is falling on a trading holiday, the trading shall be permitted on the next trading day.
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Review of Graded Surveillance Measures for Relaxation: |
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5. |
A periodic review of securities under GSM framework, to assess relaxation of surveillance action, if any, shall be carried out on a quarterly basis. The review shall be done based on the objective criteria and only securities under Stage II onwards shall be eligible for the quarterly review. For example, a company in stage III of GSM can be moved back to stage II, if qualified based on the said objective criteria. |