Stocks under Surveillance Measures7 min read
You might have come across terms like Additional Surveillance measure or Graded Surveillance measure, etc. These are methods employed by SEBI and exchanges to proactively monitor securities across markets and protect interests of investors and traders.
To ensure you are well aware before investing in any of these stocks which are under SEBI/ exchange surveillance, we have the Investcare feature for you. This will inform you about stocks which are under surveillance list of exchanges and seek your go-ahead before placing orders on such securities.
How can you be aware of stocks under Surveillance measures?
When a company’s stocks are placed under surveillance measure , there are circular announcements as well as an update on BSE and NSE websites such as NSE ASM stock list, NSE GSM stock list, etc. But often these announcements can be missed or sudden, which means you might not get enough time to exit the trade.
Therefore, the following is a sample of how you’ll be nudged by Investcare when you attempt to place orders on stocks which are under any surveillance measure.
Only if you click yes, can you proceed to placing orders for stocks which are under surveillance measures.
What are different kinds of Surveillance measures?
|Surveillance Indicator||Description||Short Code
|What does it mean?|
|99||Shortlisted under Graded Surveillance Measure||GSM – 0 (99)||Graded Surveillance Measure (GSM): SEBI and Exchanges, pursuant to discussions in joint surveillance meetings, have decided that along with the aforesaid measures there shall be additional Graded Surveillance Measures on securities with price not commensurate with financial health and fundamentals like Earnings, Book value, Fixed assets, Net-worth, P/E multiple, Market Capitalisation etc.|
|1||Graded Surveillance Measure – Stage I||GSM – I (1)|
|2||Graded Surveillance Measure – Stage II||GSM – II (2)|
|3||Graded Surveillance Measure – Stage III||GSM – III (3)|
|4||Graded Surveillance Measure – Stage IV||GSM – IV (4)|
|5||Graded Surveillance Measure – Stage V||GSM – V (5)|
|6||Graded Surveillance Measure – Stage VI||GSM – VI (6)|
|11||Short Term Additional Surveillance Measure (STASM) – Stage I||STASM – I (11)||Additional Surveillance Measures (ASM): The shortlisting of securities for placing in ASM is based on an objective criterion as jointly decided by SEBI and Exchanges covering parameters like High Low Variation, Client Concentration, Close to Close Price Variation, Market Capitalization, Volume Variation, Delivery Percentage, No. of Unique PANs, etc.|
|12||Short Term Additional Surveillance Measure (STASM) – Stage II||STASM – II (12)|
|13||Long Term Additional Surveillance Measure (LTASM) – Stage I||LTASM – I (13)|
|14||Long Term Additional Surveillance Measure (LTASM) – Stage II||LTASM – II (14)|
|15||Long Term Additional Surveillance Measure (LTASM) – Stage III||LTASM – III (15)|
|16||Long Term Additional Surveillance Measure (LTASM) – Stage IV||LTASM – IV (16)|
|20||Insolvency and Bankruptcy Code (IBC) – Receipt of Disclosure or Recommenced scrip*||IBC – Receipt (20)||Insolvency and Bankruptcy Code (IBC): This is additional surveillance measure for securities which may have or are in process of taking action under IBC.|
|21||Insolvency and Bankruptcy Code (ASM IBC) – Stage I||IBC – I (21)|
|22||Insolvency and Bankruptcy Code (ASM IBC) – Stage II||IBC – II (22)|
|23||Inter Creditor Agreement (ASM ICA) – Stage I||ICA – I (23)||Inter Creditor Agreement(ICA): This is Additional surveillance measure for securities which may have or are in process of taking action under Inter Creditor Agreement (ICA). NSE circular here.|
|24||Inter Creditor Agreement (ASM ICA) – Stage II||ICA – II (24)|
|25||Company with high promoter Encumbrance||High promoter Encumbrance (25)||This is based on promoter encumbrance wherein SEBI monitors stocks which have high levels of promoter as well as non promoter pledging of shares.|
|26||Company with high promoter as well as non-promoter Encumbrance||High Promoter/Non promoter Encumbrance (26)|
|30||Information list (unsolicited SMS)||SMS Info. List (30)||This is a surveillance action based on unsolicited videos/messages circulated in social media such as stock tips, etc. For details please refer below circulars: NSE, BSE|
|31||Current watch list (unsolicited SMS)||SMS watch List (31)|
|32||Unsolicited Video||Unsolicited Video (32)|
|33||Unsolicited Video and LTASM Stage IV||Unsolicited Video and LTASM Stage IV (33)||These scrips are under combination of one or more of the above case scenarios, for instances where the security is tagged under multiple surveillance cases as indicated.|
|50||LTASM Stage I and GSM Stage 0||LTASM I & GSM 0 (50)|
|51||LTASM Stage II and GSM Stage 0||LTASM II & GSM 0 (51)|
|52||LTASM Stage III and GSM Stage 0||LTASM III & GSM 0 (52)|
|53||LTASM Stage IV and GSM Stage 0||LTASM IV & GSM 0 (53)|
|54||STASM Stage I and GSM Stage 0||STASM I & GSM 0 (54)|
|55||STASM Stage II and GSM Stage 0||STASM II & GSM 0 (55)|
|56||Company with high promoter as well as non-promoter Encumbrance and GSM Stage 0||High promoter/Non Promoter Encumbrance & GSM 0 (56)|
|57||Company with high promoter Encumbrance and GSM Stage 0||High promoter Encumbrance & GSM 0 (57)|
|58||ASM IBC Stage I and GSM Stage 0||IBC I & GSM 0 (58)|
|59||ASM IBC Stage II and GSM Stage 0||IBC II & GSM 0 (59)|
|60||ASM ICA Stage I and GSM Stage 0||ICA I & GSM 0 (60)|
|61||ASM ICA Stage II and GSM Stage 0||ICA II & GSM 0 (61)|
|62||Insolvency and Bankruptcy Code (IBC) – Receipt of Disclosure or Recommenced scrip and GSM stage 0||IBC – Receipt & GSM 0 (62)|
|63||GSM stage I and Insolvency and Bankruptcy Code (IBC) – Receipt of Disclosure or Recommenced scrip||GSM I & IBC – Receipt (63)|
|64||GSM stage II and Insolvency and Bankruptcy Code (IBC) – Receipt of Disclosure or Recommenced scrip||GSM II & IBC – Receipt (64)|
|65||GSM stage III and Insolvency and Bankruptcy Code (IBC) – Receipt of Disclosure or Recommenced scrip||GSM III & IBC – Receipt (65)|
|66||GSM stage IV and Insolvency and Bankruptcy Code (IBC) – Receipt of Disclosure or Recommenced scrip||GSM IV & IBC – Receipt (66)|
|80||Loss making for last 8 quarters||Loss making for last 8 quarters (80)||The company has been loss making for at least the last 8 quarters for main board and last 2 years for SME companies on consolidated basis.|
|81||Encumbrance of Promoters/ promoter group shareholding more than 50%||Encumbrance of Promoters/ promoter group shareholding more than 50%(81)||Encumbrance of Promoters/ promoter group shareholding is at least 50% of the total capital.|
|82||Scrip is in BZ/SZseries||Scrip is in BZ/SZseries (82)||The company is in BZ/SZ series due to non-compliance with SEBI SOP Circular.|
|83||Company has failed to pay Annual listing fee||Company has failed to pay Annual listing fee (83)||The company has failed to pay Annual listing fee.|
|84||Derivative contracts in the scrip to be moved out of F&O||Derivative contracts in the scrip to be moved out of F&O (84)||The security is scheduled to move out of derivatives. No fresh far month contracts shall be issued.|
|34||Enhanced Surveillance Measure||ESM – I (34)||Enhanced Surveillance Measures (ESM) on Micro-Small Companies (on main board with market capitalization less than INR 500 crores) based on objective parameters viz. Price variation, Standard Deviation etc.|
|35||ESM – II (35)|
|36||ESM I & GSM 0 (36)|
|37||ESM II & GSM 0 (37)|
|–||Security is in BAN for Trade on account of breach of 95% of MWPL (i.e.20% of Non-promoter holding)||Security is Ban for trade||The Derivative contracts of stock entered in the ban list have crossed 95% of the market-wide position limit and are currently in the ban period. New positions are not allowed for any stock derivative contracts in the ban period. However, exiting the open positions is allowed. Any increase in open positions shall attract appropriate penal and disciplinary action in accordance with the exchange guidelines. The ban on derivative contracts reversed only if the open interest falls below 80%.
To know more, visit https://www.nseindia.com/products-services/equity-derivatives-position-limits
|*Earlier surveillance indicator was 10 which is now discontinued|
What is the impact of these Surveillance measures on trading in Paytm Money?
Paytm Money has blocked certain trades based on types of surveillance above:
|Products / Surveillance||ASM||GSM||IBC||Unsolicited SMS|
|Delivery sell on same day||Enabled||Disabled||Disabled||Disabled|
Please note: Some stocks may be blocked by the Risk Management team as per SEBI guidelines, in which case you’ll be unable to place those surveillance stock’s orders and will be prompted accordingly. This is subject to Risk Management policy and may be updated from time to time