https://v2.webnotes.in/tags/restrictions/Recent content in Restrictions on WebNotesHugoen-INWed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/gsm-stage-2-restrictions/Wed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/gsm-stage-2-restrictions/<p>At <strong>GSM stage 2 and above</strong>, restrictions tighten:</p> <table> <thead> <tr> <th>Stage</th> <th>Restrictions</th> </tr> </thead> <tbody> <tr> <td>Stage 2</td> <td>100% upfront margin; tightened price band (5-10%)</td> </tr> <tr> <td>Stage 3</td> <td>Trade-to-Trade settlement; no intraday</td> </tr> <tr> <td>Stage 4-6</td> <td>Tighter price band (2-5%); Periodic Call Auction; severe restrictions</td> </tr> </tbody> </table> <h2 id="why-this-tightening">Why this tightening</h2> <p>GSM stages reflect escalating fundamental concerns. The tighter restrictions:</p> <ul> <li>Reduce speculative interest.</li> <li>Allow regulator time to investigate.</li> <li>Protect retail investors.</li> </ul> <h2 id="impact-on-retail-traders">Impact on retail traders</h2> <p>For scrips at GSM stage 2+:</p> <ul> <li><strong>No intraday.</strong></li> <li><strong>Tighter price bands</strong> restrict daily moves.</li> <li><strong>Possibly Periodic Call Auction</strong> matching.</li> <li><strong>Limited liquidity</strong> as participants exit.</li> </ul> <h2 id="recovery">Recovery</h2> <p>A scrip can de-escalate (GSM stage falls) if:</p>