{"id":5499,"date":"2024-07-08T17:09:08","date_gmt":"2024-07-08T11:39:08","guid":{"rendered":"https:\/\/uat1.gettogetherfinance.com\/blog\/?p=5499"},"modified":"2025-10-10T17:01:23","modified_gmt":"2025-10-10T11:31:23","slug":"what-is-asm-and-gsm","status":"publish","type":"post","link":"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/","title":{"rendered":"What is ASM and GSM in the Stock Market?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-content\/uploads\/2024\/07\/What-is-ASM-GSM-1024x597.webp\" alt=\"What is ASM &amp; GSM\" class=\"wp-image-5500\"\/><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#Overview\" title=\"Overview\">Overview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#What_is_GSM_Graded_Surveillance_Measure\" title=\"What is GSM (Graded Surveillance Measure)?\">What is GSM (Graded Surveillance Measure)?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#Definition_and_Purpose\" title=\"Definition and Purpose\">Definition and Purpose<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#Criteria_for_GSM_Inclusion\" title=\"Criteria for GSM Inclusion\">Criteria for GSM Inclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#Process_of_Implementation\" title=\"Process of Implementation\">Process of Implementation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#Different_Grades_and_Their_Implications\" title=\"Different Grades and Their Implications\">Different Grades and Their Implications<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#Impact_on_Stocks_and_Investors\" title=\"Impact on Stocks and Investors\">Impact on Stocks and Investors<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#What_is_ASM_Additional_Surveillance_Measures\" title=\"What is ASM (Additional Surveillance Measures)\">What is ASM (Additional Surveillance Measures)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#Definition_and_Purpose-2\" title=\"Definition and Purpose\">Definition and Purpose<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#Criteria_for_ASM_Inclusion\" title=\"Criteria for ASM Inclusion\">Criteria for ASM Inclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#Process_of_Implementation-2\" title=\"Process of Implementation\">Process of Implementation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#Impact_on_Stocks_and_Investors-2\" title=\"Impact on Stocks and Investors\">Impact on Stocks and Investors<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#Difference_between_ASM_and_GSM\" title=\"Difference between ASM and GSM&nbsp;\">Difference between ASM and GSM&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#Conclusion\" title=\"Conclusion&nbsp;\">Conclusion&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#FAQs\" title=\"FAQs\">FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#u003cstrongu003eWhat_is_the_difference_between_ASM_and_GSM_on_the_stock_marketu003cstrongu003e\" title=\"u003cstrongu003eWhat is the difference between ASM and GSM on the stock market?u003c\/strongu003e\">u003cstrongu003eWhat is the difference between ASM and GSM on the stock market?u003c\/strongu003e<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#u003cstrongu003eHow_does_the_inclusion_of_a_stock_in_ASM_or_GSM_affect_its_tradingu003cstrongu003e\" title=\"u003cstrongu003eHow does the inclusion of a stock in ASM or GSM affect its trading?u003c\/strongu003e\">u003cstrongu003eHow does the inclusion of a stock in ASM or GSM affect its trading?u003c\/strongu003e<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#u003cstrongu003eWhat_criteria_are_used_for_selecting_stocks_for_ASM_and_GSMu003cstrongu003e\" title=\"u003cstrongu003eWhat criteria are used for selecting stocks for ASM and GSM?u003c\/strongu003e\">u003cstrongu003eWhat criteria are used for selecting stocks for ASM and GSM?u003c\/strongu003e<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#u003cstrongu003eHow_are_investors_informed_about_a_stocks_inclusion_in_ASM_or_GSMu003cstrongu003e\" title=\"u003cstrongu003eHow are investors informed about a stock&#8217;s inclusion in ASM or GSM?u003c\/strongu003e\">u003cstrongu003eHow are investors informed about a stock&#8217;s inclusion in ASM or GSM?u003c\/strongu003e<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/what-is-asm-and-gsm\/#u003cstrongu003eCan_a_stock_move_in_and_out_of_ASM_or_GSM_and_how_does_this_happenu003cstrongu003e\" title=\"u003cstrongu003eCan a stock move in and out of ASM or GSM, and how does this happen?u003c\/strongu003e\">u003cstrongu003eCan a stock move in and out of ASM or GSM, and how does this happen?u003c\/strongu003e<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overview\"><\/span>Overview<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>We all work better under certain supervision and guidance. Somebody should always be there to correct our mistakes, otherwise, our mistakes can affect others too. The same goes for the stocks, one mistake a company commits can impact its investors heavily. So to supervise these mistakes, <a href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/role-of-sebi\/\" target=\"_blank\" rel=\"noreferrer noopener\">SEBI <\/a>has introduced two core frameworks named, ASM and GSM.\u00a0<\/p>\n\n\n\n<p>ASM stands for Additional Surveillance Measure and GSM stands for Graded Surveillance Measures.&nbsp;<\/p>\n\n\n\n<p>Market surveillance measures were introduced by SEBI in 1995 to make sure investors\u2019 interests are very well protected and transparency is maintained between buying and selling of securities. This framework helps in monitoring market activities, identifying price volatility, and analyzing causes of probable speculation and manipulation.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_GSM_Graded_Surveillance_Measure\"><\/span>What is GSM (Graded Surveillance Measure)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-content\/uploads\/2024\/07\/What-is-GSM-1024x276.webp\" alt=\"What is GSM\" class=\"wp-image-5502\"\/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition_and_Purpose\"><\/span>Definition and Purpose<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Securities and Exchange Board of India introduced GSM as a regulatory mechanism utilized by stock exchanges and other market authorities. Its primary goal is to improve market integrity and protect investors by monitoring and prohibiting stock transactions involving unusual or suspicious trading behavior.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Criteria_for_GSM_Inclusion\"><\/span>Criteria for GSM Inclusion<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Stocks that are put under the GSM Framework are selected based on:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Unnecessarily high volatility and price variations<\/li><li>Unusual price movement not supported by either <a href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/fundamental-and-technical-analysis\/\">fundamental or technical analysis<\/a><\/li><li>Significant changes in trading volumes<\/li><li>Excessive speculation and probable manipulation in trading behavior&nbsp;<\/li><li>Company not complying with regulatory behaviors<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Process_of_Implementation\"><\/span>Process of Implementation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Once a stock is identified for inclusion in GSM, it is punto several categories based on its factors of inclusion. Here\u2019s what the process looks like:&nbsp;<\/p>\n\n\n\n<p>1. <strong>Identification:<\/strong> Stocks are identified based on predefined criteria by seeing and observing unusual activities.<\/p>\n\n\n\n<p>2. <strong>Categorization:<\/strong> Based on the severity of the issues identified, GSM stocks are placed under different stages.&nbsp;<\/p>\n\n\n\n<p>3. <strong>Notification:<\/strong> Investors and market participants of the stock are duly notified about the inclusion and the corresponding restrictions put on the stock.<\/p>\n\n\n\n<p>4. <strong>Monitoring:<\/strong> Continuous surveillance is conducted from the stock exchange to assess the effectiveness of the measures put on the stock and to formulate the plan for future action.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_Grades_and_Their_Implications\"><\/span>Different Grades and Their Implications<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Multiple stages or grades are included in GSM, each with specific restrictions to reduce excessive volatility and speculative trading. The stages include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Stage 0:<\/strong> It is the initial stage with very minimal restrictions<\/li><li><strong>Stage 1:<\/strong> In this stage, margin requirement increases with trade restrictions\u00a0<\/li><li><strong>Stage 2-6:<\/strong> In this stage, progressive restrictions are put under the stock, including mandatory deposits, trading restrictions on <a href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/intraday-trading\/\" target=\"_blank\" rel=\"noreferrer noopener\">intraday <\/a>trades, and restrictions on price movements.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_on_Stocks_and_Investors\"><\/span>Impact on Stocks and Investors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>GSM has an impact on the buying behavior of investors since it imposes trading limitations, which can lower liquidity and raise transaction costs. This can result in lower revenue and lower <a href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/stock-market-volatility\/\" target=\"_blank\" rel=\"noreferrer noopener\">short-term volatility<\/a>. For some investors, GSM serves as a warning flag, suggesting the stock&#8217;s hazards. Long-term investors can benefit from reduced speculating, whilst short-term traders may struggle owing to limited options and insufficient cash.<\/p>\n\n\n\n<p>Overall, the GSM aims to create a more stable and transparent market environment that protects investors from adverse conditions while preserving market integrity.<\/p>\n\n\n\n<p><strong>Also Read<\/strong>: <a href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/slbm\/\" target=\"_blank\" rel=\"noreferrer noopener\">SLBM<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_ASM_Additional_Surveillance_Measures\"><\/span>What is ASM (Additional Surveillance Measures)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-content\/uploads\/2024\/07\/What-is-ASM-1024x276.webp\" alt=\"What is ASM \" class=\"wp-image-5503\"\/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition_and_Purpose-2\"><\/span>Definition and Purpose<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>ASM is a regulatory framework introduced by SEBI for improving market integrity and protecting investors by closely monitoring and regulating securities that engage in unusual or suspicious trading practices mainly manipulation or speculation. <a href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/additional-surveillance-measure\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/uat1.gettogetherfinance.com\/blog\/additional-surveillance-measure\" rel=\"noreferrer noopener\">ASM <\/a>is implemented by exchanges in partnership with legal authorities such as the <a href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/role-of-sebi\/\">Securities and Exchange Board of India (SEBI)<\/a>. It aims to decrease unnecessary volatility, safeguard market interest, and ensure price stability through fundamental principles.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Criteria_for_ASM_Inclusion\"><\/span>Criteria for ASM Inclusion<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Stocks that are put under ASM are selected based on uncertain criteria that are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Significant price volatility and unusual price movement.<\/li><li>Variations in trading volumes<\/li><li>Few investors buy a certain stock in bulk<\/li><li>The company is not complying with disclosure and regulatory requirements.<\/li><li>Financial health indicators such as financial stress or performance concerns.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Process_of_Implementation-2\"><\/span>Process of Implementation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The process of implementing ASM and GSM are quite same and involves:<\/p>\n\n\n\n<p>1. <strong>Identification:<\/strong> Stocks that come under ASM criteria are identified through regular surveillance and monitoring.<\/p>\n\n\n\n<p>2. <strong>Categorization:<\/strong> The identified stocks are put under the ASM framework, which includes additional margins, trading restrictions, or enhanced disclosure requirements.<\/p>\n\n\n\n<p>3. <strong>Notification:<\/strong> Market players and participants, including brokers and investors, are informed about the inclusion of stock under ASM and the specific measures it is subjected to.<\/p>\n\n\n\n<p>4. <strong>Monitoring and Review:<\/strong> Continuous monitoring of stocks that are put under ASM is done, and these measures are reviewed periodically. Stocks may come under and out of the ASM framework based on their performance and compliance with the criteria and overall market behavior.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_on_Stocks_and_Investors-2\"><\/span>Impact on Stocks and Investors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Here\u2019s of stock\u2019s inclusion in ASM impacts investors and the stock itself:&nbsp;<\/p>\n\n\n\n<p><strong>For Stocks:<\/strong> Increased surveillance measures in stock can lead to increased scrutiny, reduced transaction costs, and liquidity, due to additional margins or <a href=\"http:\/\/www.nseindia.com\/regulations\/additional-surveillance-measure\" target=\"_blank\" rel=\"noopener\">trading restrictions<\/a>. This can stabilize prices by reducing speculative activities.<\/p>\n\n\n\n<p><strong>For Investors:<\/strong> ASM serves as a warning indicator for investors that signals stock-related adversities. Long-term investors can profit from increased stability and protection against market manipulation, however, <a href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/long-term-vs-short-term-trading\/\" target=\"_blank\" rel=\"noreferrer noopener\">short-term traders<\/a> may struggle due to tight rules and limited liquidity.<\/p>\n\n\n\n<p>ASM aims to encourage a fair and transparent market environment for both companies and investors, ensuring that price movements showcase fair market conditions and protect investors from possible and uncertain adversities<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Difference_between_ASM_and_GSM\"><\/span>Difference between ASM and GSM&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-content\/uploads\/2024\/07\/Difference-between-ASM-and-GSM--1024x276.webp\" alt=\"Difference between ASM and GSM\u00a0\" class=\"wp-image-5504\"\/><\/figure>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Feature<\/strong><\/td><td><strong>ASM (Additional Surveillance Measure)<\/strong><\/td><td><strong>GSM (Graded Surveillance Measure)<\/strong><\/td><\/tr><tr><td><strong>Purpose<\/strong><\/td><td>To monitor and control stocks with unusual trading patterns<\/td><td>To enhance market integrity through graded (staged) levels of surveillance measures<\/td><\/tr><tr><td><strong>Criteria for Inclusion<\/strong><\/td><td>Significant price volatility, abnormal volume changes, non-compliance<\/td><td>High volatility, significant price movement, potential market manipulation<\/td><\/tr><tr><td><strong>Implementation Process<\/strong><\/td><td>Identification, categorization, notification, monitoring and review<\/td><td>Identification, categorization into stages, notification, continuous monitoring<\/td><\/tr><tr><td><strong>Stages\/Grades<\/strong><\/td><td>No specific stages, or measures applied as needed<\/td><td>Multiple stages (0 to 6), each with progressively stricter measures<\/td><\/tr><tr><td><strong>Restrictions Imposed<\/strong><\/td><td>Additional margins, trading restrictions, enhanced disclosure<\/td><td>Higher margins, mandatory deposits, intraday trade restrictions, price movement limits<\/td><\/tr><tr><td><strong>Impact on Stocks<\/strong><\/td><td>Reduced liquidity, higher transaction costs, stabilized prices<\/td><td>Reduced liquidity, curbed speculative trading, stabilized prices<\/td><\/tr><tr><td><strong>Impact on Investors<\/strong><\/td><td>Warning signal for potential risks, challenges for short-term traders<\/td><td>Cautionary signal, potential benefits for <a href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/benefits-of-holding-stocks\/\" target=\"_blank\" rel=\"noreferrer noopener\">long-term investors<\/a>, challenges for speculators<\/td><\/tr><tr><td><strong>Objective<\/strong><\/td><td>To curb excessive volatility and prevent market manipulation<\/td><td>To create a stable and transparent market environment through graded surveillance<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>ASM and GSM are essential frameworks created by SEBI to protect investor interests and market integrity. While ASM focuses on reducing excessive volatility and ensuring market stability through increased surveillance and trading limits, GSM takes a tiered approach to addressing different levels of speculative trading and potential manipulation. Both methods serve as warning signs for investors, encouraging transparency and mitigating unnecessary risks. ASM and GSM strive to create a fair and stable market environment by safeguarding long-term investors from bad conditions while limiting short-term speculative actions. Understanding these metrics enables investors to better navigate the stock market, making informed decisions that are consistent with their investing plans and risk tolerance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1720437331310\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"u003cstrongu003eWhat_is_the_difference_between_ASM_and_GSM_on_the_stock_marketu003cstrongu003e\"><\/span>u003cstrongu003eWhat is the difference between ASM and GSM on the stock market?u003c\/strongu003e<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>ASM (Additional Surveillance Measure) monitors the stocks with disrupted trading patterns using particular measures such as increased margins and trading limitations. In contrast, GSM (Graded Surveillance Measure) has a graded approach with numerous stages, each applying increasingly stringent measures to reduce speculative trading and improve market integrity.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1720437343694\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"u003cstrongu003eHow_does_the_inclusion_of_a_stock_in_ASM_or_GSM_affect_its_tradingu003cstrongu003e\"><\/span>u003cstrongu003eHow does the inclusion of a stock in ASM or GSM affect its trading?u003c\/strongu003e<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Due to increased margins and trading restrictions, inclusion in ASM or GSM often results in lower liquidity and higher transaction costs. These strategies aim to keep prices stable by reducing speculative activity and ensuring that price swings reflect true market realities.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1720437352509\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"u003cstrongu003eWhat_criteria_are_used_for_selecting_stocks_for_ASM_and_GSMu003cstrongu003e\"><\/span>u003cstrongu003eWhat criteria are used for selecting stocks for ASM and GSM?u003c\/strongu003e<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Significant market volatility, unexpected price fluctuation, and noncompliance with regulatory rules are among the characteristics used to pick stocks for ASM. GSM stocks are picked due to their excessive volatility, substantial price fluctuations that are not justified by fundamentals, and the possibility of market manipulation.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1720437360997\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"u003cstrongu003eHow_are_investors_informed_about_a_stocks_inclusion_in_ASM_or_GSMu003cstrongu003e\"><\/span>u003cstrongu003eHow are investors informed about a stock&#8217;s inclusion in ASM or GSM?u003c\/strongu003e<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>When a stock is classified as ASM or GSM, market participants, including investors and brokers, are notified via official notifications from stock exchanges and regulatory bodies. These announcements describe the exact controls and limits imposed on the stock.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1720437368759\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"u003cstrongu003eCan_a_stock_move_in_and_out_of_ASM_or_GSM_and_how_does_this_happenu003cstrongu003e\"><\/span>u003cstrongu003eCan a stock move in and out of ASM or GSM, and how does this happen?u003c\/strongu003e<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, a stock can move in and out of ASM or GSM based on its adherence to the criteria and general market performance. Continuous monitoring and periodic reviews are done to evaluate the effectiveness of the measures, and stocks may be reclassified or removed from these frameworks as needed.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Overview We all work better under certain supervision and guidance. Somebody should always be there to correct our mistakes, otherwise, our mistakes can affect others too. The same goes for&#8230;<\/p>\n","protected":false},"author":4,"featured_media":5501,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[62],"tags":[],"class_list":["post-5499","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market"],"acf":[],"_links":{"self":[{"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/posts\/5499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/comments?post=5499"}],"version-history":[{"count":6,"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/posts\/5499\/revisions"}],"predecessor-version":[{"id":7807,"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/posts\/5499\/revisions\/7807"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/media\/5501"}],"wp:attachment":[{"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/media?parent=5499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/categories?post=5499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/tags?post=5499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}