Graded Surveillance Measure (GSM)/ Insolvency and Bankruptcy Code (IBC)
In order to enhance market integrity and safeguard the interest of investors, Securities and Exchange Board of India (SEBI) and Exchanges, have been introducing various enhanced surveillance measures such as reduction in price band, periodic call auction and transfer of securities to Trade to Trade segment from time to time.
There are 6 stages of surveillance actions as shown in the image below:
This is the NSE list and BSE list of GSM stocks. Please refer to this NSE FAQ for more details.
Why am I not allowed to trade GSM stage 2 and above stocks?
You will not be able to buy the stocks that are in GSM stage 2 or higher. These stocks require Additional Surveillance Deposit (ASD) of 100% the trade value or more. The ASD margin will remain blocked by the exchange for a period of at least 2 months even after you sell the stock.
The restrictions are only applicable to fresh buy purchases as part of our RMS policy. If you hold a GSM stage 2 and above stock in your account, you will be able to exit it.
Stocks under IBC
Such stocks are also blocked for Trading as per TradePlus RMS Policy. Click here to know the list of stocks falling under IBC
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