Why is an alert displayed mentioning that the stock I am trading in is undergoing enhanced surveillance measures?
Why is an alert displayed mentioning that the stock I am trading in is undergoing enhanced surveillance measures? Find a clear answer in this FAQ by 021 Trade.
An alert appears asking for reconfirmation before placing an order for a stock that is on the stock exchange’s Enhanced Surveillance Measure (ESM) list, such as Additional Surveillance Measures (ASM) or Graded Surveillance Measures (GSM). These stocks are placed under surveillance due to factors like unusual price movements, sudden changes in trading volume, or other indicators that may suggest potential price manipulation.
This alert is mandated by regulations of the Securities and Exchange Board of India and stock exchanges such as the National Stock Exchange of India and Bombay Stock Exchange. Its purpose is to ensure that investors are aware that the stock is under special surveillance measures before placing an order.
