{"id":2933,"date":"2021-08-14T15:39:19","date_gmt":"2021-08-14T10:09:19","guid":{"rendered":"https:\/\/flattrade.in\/kosh\/?p=2933"},"modified":"2024-07-24T10:09:39","modified_gmt":"2024-07-24T04:39:39","slug":"graded-surveillance-measure-gsm","status":"publish","type":"post","link":"https:\/\/flattrade.in\/kosh\/graded-surveillance-measure-gsm\/","title":{"rendered":"Graded Surveillance Measure (GSM)"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2933\" class=\"elementor elementor-2933\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5ce354a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5ce354a\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a2da4a3\" data-id=\"a2da4a3\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-50cda95 elementor-widget elementor-widget-text-editor\" data-id=\"50cda95\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Graded Surveillance Measure is a framework introduced by Securities Exchange Board of India, the regulatory body for stock and commodities markets, along with exchanges in India. The measure is to protect investors from being mislead and also monitor unusual price changes and spurt in volumes of company shares which is not in sync with the fundamentals and financial strength of company. These include company earnings, price to book value, fixed assets, net worth, P\/E multiple, etc.<\/p><p>There has been instances in Indian stock market where stocks prices have been manipulated and subjected to extreme price volatility. The different processes and stages mentioned by SEBI will discourage market manipulators to pump and dump the stock, while helping the market participants to be really cautious and warn them about such events and stocks.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f4752eb elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f4752eb\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-90c7ea6\" data-id=\"90c7ea6\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-381e02b elementor-widget elementor-widget-heading\" data-id=\"381e02b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><br>Criteria for shortlisting stocks under GSM<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1c36e76 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1c36e76\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2a17f41\" data-id=\"2a17f41\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b5d4350 elementor-widget elementor-widget-text-editor\" data-id=\"b5d4350\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>For a scrip to be shortlisted in GSM list, all the following criteria must be fulfilled<\/p><ol><li>Securities with latest available net worth less than or equal to Rs. 10 crore. Net worth is calculated as [Share Capital + Reserves &amp; Surplus \u2013 debit balance in P&amp;L]<\/li><li>Securities with latest available Net Fixed Assets less than or equal to Rs. 25 crore. Net Fixed Assets is the total of Tangible Assets and Capital Work in Progress<\/li><li>Securities with Price-to-Earnings (PE) greater than 2 times PE of Benchmark Index (Nifty 500) or negative PE.<\/li><\/ol><p><br \/>Moreover, a company will be directly placed in Stage I under GSM, if it satisfies the following criteria<\/p><ol><li>Securities with full market capitalization less than Rs. 25 crore<\/li><li>Securities with PE greater than 2 times PE of Benchmark Index (Nifty 500) or<\/li><li>If the security has a negative PE, the following should be considered: P\/B (Price-to-Book) value of scrip greater than 2 times the P\/B value of Benchmark Index (Nifty 500) or P\/B value is negative<\/li><\/ol><p>\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-235eeaa elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"235eeaa\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0060bb0\" data-id=\"0060bb0\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4a5a7ad elementor-widget elementor-widget-heading\" data-id=\"4a5a7ad\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Surveillance Actions<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1b0f430 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1b0f430\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d3b8e0f\" data-id=\"d3b8e0f\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a3e3f0d elementor-widget elementor-widget-text-editor\" data-id=\"a3e3f0d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Initially, when SEBI came out with these rules in 2017, there were six stages, but the stages were revised and decreased to just four stages. The following stages and surveillance actions:<\/p>\n<p>Stage I: Applicable margin rate shall be 100% and price band of 5% or lower as applicable.<\/p>\n<p>Stage II: Trade for trade with price band of 5% or lower as applicable and Additional surveillance deposit (ASD) of 50% of trade value to be deposited by the buyers.<\/p>\n<p>Stage III: Trade for trade with price band of 5% or lower as applicable and trading permitted once a week (every Monday or 1st trading day of the week) and ASD (100% of trade value) to be deposited by the buyers.<\/p>\n<p>Stage IV: Trade for trade with price band of 5% or lower as applicable and trading permitted once a week (every Monday or 1st trading day of the week) and ASD (100% of trade value) to be deposited by the buyers with no upward movement.<\/p>\n<p>Shares in Trade for Trade segment are those stocks which cannot be traded intraday. Trade for Trade segment is also known as T2T segment and stocks in this segment must be paid fully and taken delivery. Only after delivery, a client can sell the stock which is T+2 days.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-fd24476 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"fd24476\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e248b8a\" data-id=\"e248b8a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-75ed08d elementor-widget elementor-widget-heading\" data-id=\"75ed08d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><br>Companies excluded from GSM <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-db36909 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"db36909\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-16148b7\" data-id=\"16148b7\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e3eddc5 elementor-widget elementor-widget-text-editor\" data-id=\"e3eddc5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ol><li>Securities already under suspension<\/li><li>Securities which have derivative products<\/li><li>Securities which are part of NSE or BSEindex<\/li><li>Public Sector Enterprises and its subsidiaries<\/li><li>Securities listed in the past one 1 year through Initial Public Offering<\/li><li>Securities which have paid a dividend for each of the last three preceding years<\/li><li>Securities with Institutional holding greater than 10%, provide, if the promoter entity has not offloaded any share in the last 5 yearsand the current market price is within the range of High &amp; Low price in the past 3 years<\/li><li>Securities where the price discovery is yet to take place<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d61428f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d61428f\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-81452aa\" data-id=\"81452aa\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-dbce311 elementor-widget elementor-widget-text-editor\" data-id=\"dbce311\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>For more details on shortlisted shares under GSM, <a href=\"https:\/\/www.nseindia.com\/reports\/gsm\"><strong>click here<\/strong><\/a>\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0a90e2a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0a90e2a\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-bf14eed\" data-id=\"bf14eed\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e94d6eb elementor-widget elementor-widget-spacer\" data-id=\"e94d6eb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c7eaf9f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c7eaf9f\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-adb61e9\" data-id=\"adb61e9\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-065b52d elementor-widget elementor-widget-text-editor\" data-id=\"065b52d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>To read more about Additional Surveillance Measures, <a href=\"https:\/\/flattrade.in\/kosh\/additional-surveillance-measures\/\"><strong>click here<\/strong><\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"Graded Surveillance Measure is a framework introduced by Securities Exchange Board of India, the regulatory body for stock&hellip;","protected":false},"author":5,"featured_media":2937,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"csco_post_video_bg_volume":false,"footnotes":""},"categories":[356],"tags":[26],"class_list":{"0":"post-2933","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-market","8":"tag-nse","9":"cs-entry","10":"cs-video-wrap"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Graded Surveillance Measure (GSM) - Flattrade Kosh<\/title>\n<meta name=\"description\" content=\"Graded Surveillance Measure is a 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