Regulation GSM

GSM (Graded Surveillance Measure) on Zerodha

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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:

StageIndicative restrictions
Stage 1-3100% upfront margin; tightened price band
Stage 4-6T2T 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.

See also

External references

References

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

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