Stocks under Surveillance Measures: ASM, ESM, GSM

moneycontrol

13 Feb 202401:16

Summary

TLDRThe Securities and Exchange Board of India (SEBI) and stock exchanges enforce critical regulatory measures to ensure market stability and protect investor interests. Surveillance measures such as Graded Surveillance Measure (GSM), Additional Surveillance Measure (ASM), and Enhanced Surveillance Measure (ESM) are implemented to maintain market integrity. These preemptively shield against disruptions. Investors are advised to review surveillance action circulars on the exchange website for informed trading decisions. For assistance, contact NSE at ..in or 1800266 0050.

Takeaways

🛡️ Regulatory measures are essential for maintaining market stability and protecting investor interests.
👮‍♂️ The Securities and Exchange Board of India (SEBI) and stock exchanges enforce surveillance measures to ensure market integrity.
🔍 Surveillance measures include Graded Surveillance Measure (GSM), Additional Surveillance Measure (ASM), and Enhanced Surveillance Measure (ESM).
📈 Adherence to the Insolvency and Bankruptcy Code (IBC) is also a part of market surveillance.
🔑 These measures act as preemptive shields against market disruptions.
🔎 Exchanges and SEBI jointly identify stocks (scripts) that meet the criteria for surveillance actions.
📢 Surveillance actions are detailed in circulars regularly published on the exchange website.
👀 Investors are advised to review these circulars to understand the impact of surveillance actions on specific stocks.
📞 For further assistance, investors can contact the NSE at the provided phone number or email address.
⚠️ It's crucial for investors to stay informed about surveillance actions to make informed trading decisions.

Q & A

What is the primary purpose of regulatory measures in the financial market?
-The primary purpose of regulatory measures is to maintain stability and safeguard the interests of investors.
Which board is responsible for implementing surveillance measures in India's financial market?
-The Securities and Exchange Board of India (SEBI) is responsible for implementing surveillance measures in India's financial market.
What are the different types of surveillance measures mentioned in the script?
-The different types of surveillance measures mentioned are Graded Surveillance Measure (GSM), Additional Surveillance Measure (ASM), Enhanced Surveillance Measure (ESM), and adherence to the Insolvency and Bankruptcy Code (IBC).
What is the role of Graded Surveillance Measure (GSM) in the market?
-Graded Surveillance Measure (GSM) is a preemptive measure to shield against market disruptions and maintain market integrity.
How do exchanges identify stocks for surveillance actions?
-Exchanges jointly identify stocks, or 'scripts,' that qualify under the criteria of surveillance measures leading to surveillance actions.
Where are the circulars detailing surveillance actions published?
-Circulars detailing surveillance actions are regularly published on the exchange's website.
What advice is given to investors regarding surveillance actions on stocks?
-Investors are advised to review the circulars to understand the implications of surveillance actions on particular scripts before making any trading decisions.
What is the significance of the Insolvency and Bankruptcy Code (IBC) in the context of surveillance measures?
-The Insolvency and Bankruptcy Code (IBC) is a legal framework that is adhered to as part of surveillance measures, which aids in maintaining financial discipline and integrity.
What is the Enhanced Surveillance Measure (ESM) and its purpose?
-The Enhanced Surveillance Measure (ESM) is a more stringent surveillance action taken to prevent market manipulations and ensure fair trading practices.
How can investors get further assistance regarding surveillance actions?
-For further assistance, investors can reach out to the NSE at the provided contact number, 1800266 0050.
What is the purpose of publishing surveillance actions on the exchange website?
-Publishing surveillance actions on the exchange website is to keep the market participants informed and to promote transparency in the trading process.

Outlines

00:00

🛡️ Market Surveillance Measures by SEBI and Exchanges

The paragraph discusses the importance of regulatory measures in maintaining market stability and protecting investor interests. It highlights the Securities and Exchange Board of India (SEBI) and the exchanges' implementation of various surveillance measures to ensure market integrity. These measures include Graded Surveillance Measure (GSM), Additional Surveillance Measure (ASM), Enhanced Surveillance Measure (ESM), and adherence to the Insolvency and Bankruptcy Code (IBC). These serve as preemptive shields against market disruptions. The exchanges identify stocks, or 'scripts,' that meet the criteria for these measures, leading to surveillance actions. Circulars detailing these actions are published regularly on the exchange website. Investors are advised to review these circulars to understand the impact of surveillance actions on specific scripts before trading. For further assistance, they can contact the NSE at the provided phone number.

Mindmap

Keywords

💡Regulatory Measures

Regulatory measures refer to the rules and policies established by regulatory bodies to oversee and control various sectors, such as finance and securities. In the context of the video, they are crucial for maintaining market stability and protecting investor interests, ensuring fair and transparent practices within the financial markets. The script mentions that the Securities and Exchange Board of India (SEBI) and the exchanges have implemented these measures to uphold market integrity.

💡Market Integrity

Market integrity refers to the assurance that the financial markets are fair, transparent, and free from fraudulent activities. It is the cornerstone of investor confidence. The video emphasizes the role of surveillance measures in preserving market integrity by preventing market disruptions and ensuring that all market participants adhere to the established rules and regulations.

💡Surveillance Measures

Surveillance measures are the monitoring and oversight activities conducted by regulatory bodies to detect and prevent market manipulation, fraud, and other disruptive activities. In the script, various types of surveillance measures are mentioned, including GSM, ASM, and ESM, which are implemented by SEBI and exchanges to maintain market order and protect investors.

💡Graded Surveillance Measure (GSM)

Graded Surveillance Measure (GSM) is a specific type of surveillance measure that is part of a tiered system to monitor and regulate trading activities in the stock market. It is designed to identify and manage potential risks associated with certain stocks or trading patterns. The script indicates that GSM is one of the tools used by exchanges to maintain market stability and integrity.

💡Additional Surveillance Measure (ASM)

Additional Surveillance Measure (ASM) is another layer of market surveillance that is implemented when there is a need for heightened monitoring of specific stocks or trading activities. ASMs are put in place to ensure that trading practices remain within the boundaries of regulatory compliance and to safeguard against market manipulation. The video script mentions ASM as one of the measures that exchanges use to uphold market integrity.

💡Enhanced Surveillance Measure (ESM)

Enhanced Surveillance Measure (ESM) represents an intensified form of market surveillance that is applied to certain stocks or trading activities that exhibit high volatility or other risk factors. ESMs are designed to provide a more rigorous oversight to prevent potential market disruptions and protect investor interests. The script highlights ESM as a part of the regulatory framework aimed at maintaining market stability.

💡Insolvency and Bankruptcy Code (IBC)

The Insolvency and Bankruptcy Code (IBC) is a legal framework that governs the process of insolvency and bankruptcy in India. It provides a time-bound and efficient mechanism for resolving insolvency matters. In the context of the video, adherence to the IBC is mentioned as one of the surveillance measures, indicating its importance in maintaining financial discipline and integrity within the market.

💡Exchanges

Exchanges in the financial context refer to the platforms where securities, such as stocks and bonds, are traded. They are the venues where buyers and sellers come together to execute transactions. The video script mentions that exchanges, in collaboration with SEBI, identify stocks (scripts) that qualify for surveillance measures, which underscores their role in implementing regulatory policies and maintaining market integrity.

💡Scripts

In the context of the script, 'scripts' refers to stocks that are under surveillance due to meeting certain criteria set by the regulatory measures. These stocks are monitored closely to ensure compliance with market rules and to prevent any manipulative or disruptive trading activities. The term is used to describe the specific securities that are subject to heightened scrutiny by the exchanges.

💡Surveillance Actions

Surveillance actions are the steps taken by regulatory bodies or exchanges in response to the identification of potential risks or non-compliance with market rules. These actions can include restrictions on trading, increased monitoring, or other measures to address the identified issues. The video script mentions that circulars detailing these actions are published, which is a way for investors to stay informed about the implications for specific stocks.

💡Investor Protection

Investor protection is a key objective of regulatory bodies and is central to the theme of the video. It involves ensuring that investors are safeguarded from fraudulent practices and market manipulations, and that they have access to fair and transparent trading environments. The various surveillance measures mentioned in the script are all aimed at protecting investors and maintaining their trust in the financial markets.

Highlights

Regulatory measures are essential for maintaining market stability and protecting investor interests.

The Securities and Exchange Board of India (SEBI) and exchanges have implemented various surveillance measures.

Graded Surveillance Measure (GSM) is one of the surveillance measures to uphold market integrity.

Additional Surveillance Measure (ASM) is another measure to prevent market disruptions.

Enhanced Surveillance Measure (ESM) is implemented for further market oversight.

Adherence to the Insolvency and Bankruptcy Code (IBC) is part of the surveillance measures.

Surveillance measures act as preemptive shields against market disruptions.

Exchanges identify stocks that qualify under surveillance measures, referred to as 'scripts'.

Surveillance actions are detailed in circulars published on the exchange website.

Investors are advised to review circulars for understanding the implications of surveillance actions.

Surveillance actions can impact trading decisions for particular scripts.

For further assistance, investors can reach out to the NSE at the provided contact details.

NSE provides a phone number for investors seeking further assistance.

Surveillance measures are implemented to safeguard the interests of investors.

The exchange website is a resource for investors to stay informed about market surveillance.

Regular updates on surveillance actions help maintain transparency in the market.

Investors are encouraged to stay updated with the latest surveillance actions for informed trading.