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Securities and Exchange Board of India (SEBI) and Exchanges in order to enhance market integrity and safeguard the interest of investors have been introducing various enhanced pre-emptive surveillance measures such as reduction in price band, periodic call auction and transfer of securities to Trade for Trade segment from time to time.
The main objective of these measures is to;
1. Graded Surveillance Measure (GSM)
In continuation to various surveillance measures already implemented, SEBI and Exchanges, pursuant to discussions in joint surveillance meetings, have decided that along with the aforesaid measures there shall be additional Graded Surveillance Measures on securities with price not commensurate with financial health and fundamentals like Earnings, Book value, Fixed assets, Net-worth, P/E multiple, Market Capitalisation, etc.
For the list of securities & Exchange circulars on Graded Surveillance Measure click HERE
2. Additional Surveillance Measure (ASM)
In continuation to various surveillance measures already implemented, SEBI and Exchanges, pursuant to discussions in joint surveillance meetings, have decided that along with the aforesaid measures there shall be Additional Surveillance Measures (ASM) on securities with surveillance concerns based on objective parameters viz. Price / Volume variation, Volatility etc.
The shortlisting of securities for placing in ASM is based on an objective criterion as jointly decided by SEBI and Exchanges covering the following parameters:
High Low Variation
Close-to-Close Price Variation
No. of Unique PANs
For the list of securities & Exchange circulars on Additional Surveillance Measure click HERE
3. Insolvency resolution process (IRP )
IRP stands for Corporate Insolvency resolution process. It is a process under the Act Insolvency and Bankruptcy Code , 2016. (The Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of India).
In case a corporate debtor makes a default in repayment of dues of the creditors, the financial creditor/s has the power to start the insolvency resolution process. In order to initiate the resolution process and this process happens in stages.
Two categories that fall under this are Insolvency and Bankruptcy Code(IBC)/Inter Creditor Agreement(ICA)
For the list of securities & Exchange circulars on Insolvency and Bankruptcy Code(IBC)/Inter Creditor Agreement(ICA) Click HERE
4. Enhanced Surveillance Measure (ESM)
SEBI and Exchanges in a joint meeting have decided to introduce the ESM framework for Micro-Small Companies (on the main board with a market cap of less than 500 crores) with effect from June 05, 2023.
For more details, you can refer to Exchange circulars HERE
For Consolidated list of Surveillance indicators click here