Why are intraday orders not allowed for some stocks?

Intraday trading in certain stocks may be restricted by the exchange or the broker based on their risk management policies. This can happen for the following reasons:

• Low Liquidity: Stocks with very low trading volume are considered illiquid. It can be difficult to enter or exit positions quickly without causing large price changes or facing high slippage.
• High Volatility: Stocks that show sharp price movements can be risky for intraday trading, especially when leverage is involved.
• Risk of Manipulation: Exchanges may restrict intraday trading in stocks that appear prone to price manipulation. Surveillance frameworks such as Additional Surveillance Measures (ASM), Graded Surveillance Measures (GSM), or stocks with high promoter pledge are often monitored closely to maintain a fair and transparent market environment.