Surveillance on WebNotes

How to find the list of scrips where MIS, cover orders or trading is restricted

Sun, 21 Jun 2026 00:00:00 +0000

The list of scrips where MIS, cover orders, bracket orders or trading itself is restricted lives in three places: a consolidated scrip-restriction file Zerodha publishes under Resources, Utilities on zerodha.com that names the allowed product types per scrip; the GSM , ASM , ESM and trade-to-trade surveillance lists that NSE and BSE maintain; and the live Kite order window, where a blocked product type is greyed out the moment you open it. A restriction is never hidden, but it is split across a broker file, the exchange frameworks and the order screen, and knowing which one to read saves a rejected order.

ASM (Additional Surveillance Measure) on Zerodha

Wed, 20 May 2026 00:00:00 +0000

Additional Surveillance Measure (ASM) restricts trading on scrips showing unusual price or volume patterns. Zerodha mirrors the exchange-defined ASM list; restrictions apply per the SEBI / exchange framework.

For the full framework explanation, see ASM and GSM frameworks explained .

On Zerodha specifically

Scrips on ASM carry a surveillance tag in Kite marketwatch.
Order placement for ASM-restricted scrips follows the stage’s rules:
- Stage 1: 100% upfront margin.
- Stage 2+: T2T, no intraday.
- Stage 4: Periodic Call Auction.

Long-term vs short-term

Long-term ASM : Monthly trigger; 4 stages.
Short-term ASM : Daily / weekly trigger; lighter restrictions.

A scrip can be on one or both.

ASM and GSM frameworks explained

Wed, 20 May 2026 00:00:00 +0000

The Additional Surveillance Measure (ASM) and Graded Surveillance Measure (GSM) frameworks are SEBI / exchange-level surveillance mechanisms that restrict trading on scrips showing unusual price or volume patterns, protecting retail investors from potential pump-and-dump schemes and managing market quality.

ASM and GSM are distinct frameworks

Framework	Focus	Trigger
ASM	Volatility, price-volume anomalies	Statistical thresholds (price band, volume, delivery %, etc.)
GSM	Fundamental quality, surveillance concerns	Earnings, governance, low-float, illiquidity

A scrip can be on ASM only, GSM only, both simultaneously, or neither.

ASM stages 1 to 4 explained

Wed, 20 May 2026 00:00:00 +0000

Long-term ASM has 4 escalating stages. Each stage adds restrictions:

Stage	Restrictions
Stage 1	100% upfront margin; tightened price band
Stage 2	T2T settlement (no intraday); plus Stage 1 restrictions
Stage 3	Tighter price band (5% or 2%); plus Stages 1-2
Stage 4	Periodic Call Auction matching; plus Stages 1-3

For the full details: Long-term ASM Stage 1 to 4 .

How scrips move between stages

Monthly trigger computation by exchange.
Escalation: Triggers continue; stage rises.
De-escalation: Triggers normalise; stage falls.
Exit: No active triggers; scrip removed from ASM.

External references

References

NSE India, LT-ASM operational guidelines, nseindia.com.
SEBI, ASM framework, sebi.gov.in.

GSM (Graded Surveillance Measure) on Zerodha

Wed, 20 May 2026 00:00:00 +0000

Graded Surveillance Measure (GSM) targets scrips with fundamental quality concerns: low free float, earnings concerns, auditor issues, promoter pledge, etc. Different from ASM, which focuses on price-volume anomalies.

For the broader framework: ASM and GSM frameworks explained .

GSM stages

GSM has stages 1-6. Higher stages = more severe concerns + tighter restrictions:

Stage	Indicative restrictions
Stage 1-3	100% upfront margin; tightened price band
Stage 4-6	T2T settlement; tighter band; Periodic Call Auction

Triggers

Very low free float.
Net worth below threshold.
Earnings decline.
Auditor qualifications.
Promoter pledge concentration.

On Zerodha

GSM scrips carry surveillance tag in Kite.
Stage-specific restrictions applied at order placement.
Existing holdings can be sold via delivery.

External references

References

NSE India, GSM framework, nseindia.com.
SEBI, Graded Surveillance Measure, sebi.gov.in.

GSM stage 2+ restrictions

Wed, 20 May 2026 00:00:00 +0000

At GSM stage 2 and above, restrictions tighten:

Stage	Restrictions
Stage 2	100% upfront margin; tightened price band (5-10%)
Stage 3	Trade-to-Trade settlement; no intraday
Stage 4-6	Tighter price band (2-5%); Periodic Call Auction; severe restrictions

Why this tightening

GSM stages reflect escalating fundamental concerns. The tighter restrictions:

Reduce speculative interest.
Allow regulator time to investigate.
Protect retail investors.

Impact on retail traders

For scrips at GSM stage 2+:

No intraday.
Tighter price bands restrict daily moves.
Possibly Periodic Call Auction matching.
Limited liquidity as participants exit.

Recovery

A scrip can de-escalate (GSM stage falls) if:

Long-term ASM Stage 1 to 4

Wed, 20 May 2026 00:00:00 +0000

Long-term Additional Surveillance Measure (LT-ASM) is the multi-stage surveillance framework operated jointly by NSE and BSE. Scrips are added based on statistical triggers and escalate through Stages 1-4 as conditions warrant. Each stage imposes progressively tighter trading restrictions.

The 4 stages

Stage	Restriction summary
Stage 1	100% upfront margin; price band may tighten to 5%-10%
Stage 2	100% upfront margin + Trade-to-Trade settlement (no intraday)
Stage 3	T2T settlement + tighter price band (5% or 2%)
Stage 4	T2T + 2% price band + Periodic Call Auction (limited matching windows)

Each stage builds on the previous; a Stage 4 scrip has all the restrictions of Stages 1-3 plus the additional ones.

Periodic Call Auction stocks

Wed, 20 May 2026 00:00:00 +0000

Periodic Call Auction (PCA) is a discrete-interval order-matching mechanism used by NSE / BSE for thinly traded or heavily surveilled stocks. Instead of continuous matching during market hours, PCA matches orders at scheduled intervals (typically every 30 minutes or hour), allowing price discovery in a controlled environment.

How PCA works

In a normal session:

Continuous matching of buy and sell orders throughout 09:15 to 15:30.
Real-time price discovery.

In PCA:

Short-term ASM

Wed, 20 May 2026 00:00:00 +0000

Short-term ASM (ST-ASM) is the rapid-response surveillance track within the Additional Surveillance Measure framework. Where Long-term ASM responds to month-end statistical triggers, ST-ASM responds to acute single-day or short-window price spikes.

When ST-ASM triggers

ST-ASM triggers when a scrip experiences:

A single-day price move beyond defined thresholds (typically 10-15% in either direction).
A short-window cumulative move (over 5-10 trading days) above a higher threshold.
Volume spike disproportionate to the scrip’s average activity.

The trigger is computed daily by the exchange’s surveillance engine; ST-ASM additions can be announced same-day or by next-day open.

Surveillance measures and trading risks

Wed, 20 May 2026 00:00:00 +0000

SEBI / NSE / BSE operate several surveillance frameworks to maintain market quality. For traders, each framework creates specific risks:

Surveillance frameworks overview

Framework	Focus	Risk for trader
ASM (Additional Surveillance Measure)	Price-volume anomalies	Higher margin, T2T, restricted trading
GSM (Graded Surveillance Measure)	Fundamental quality concerns	T2T, tight price band
Trade-to-Trade (T2T)	Delivery-only segment	No intraday
Periodic Call Auction (PCA)	Illiquid / restricted scrips	Discrete-interval matching
Circuit filters	Daily price band caps	Locked at circuit price

Risk-management implications

For each surveillance level:

Trade-to-Trade segment rules

Wed, 20 May 2026 00:00:00 +0000

The Trade-to-Trade (T2T) segment is a settlement framework where every trade must result in delivery; no intraday squareoff is permitted, no inter-day netting. T2T is used as a surveillance restriction on scrips with elevated speculative activity or governance concerns.

How T2T works

Normal segment: Trades match continuously during the day; intraday positions can be opened and closed within the session (MIS). Inter-day positions are netted before delivery.

T2T segment: Each buy is treated as a separate trade requiring delivery; each sell requires delivery from the seller’s demat. No squareoff is possible.

Surveillance on WebNotes

How to find the list of scrips where MIS, cover orders or trading is restricted

ASM (Additional Surveillance Measure) on Zerodha

On Zerodha specifically

Long-term vs short-term

ASM and GSM frameworks explained

ASM and GSM are distinct frameworks

ASM stages 1 to 4 explained

How scrips move between stages

See also

External references

References

GSM (Graded Surveillance Measure) on Zerodha

GSM stages

Triggers

On Zerodha

See also

External references

References

GSM stage 2+ restrictions

Why this tightening

Impact on retail traders

Recovery

Long-term ASM Stage 1 to 4

The 4 stages

Periodic Call Auction stocks

How PCA works

Short-term ASM

When ST-ASM triggers

Surveillance measures and trading risks

Surveillance frameworks overview

Risk-management implications

Trade-to-Trade segment rules

How T2T works