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Surveillance measures are regulatory steps implemented by SEBI and stock exchanges to monitor trading activities across markets. These measures focus on safeguarding investors and traders from potential risks.
Exchanges have mandated that brokers display cautionary notifications mentioning all the surveillance actions on the instrument when a client tries to place an order.
These measures aim to enhance your awareness regarding your trades and ensure transparency. By understanding the alerts and terms presented, you can make informed decisions while adhering to regulatory guidelines.
Below is a list of terms derived for your better understanding:
This surveillance method is used by SEBI and exchanges to monitor and regulate securities trading. This method protects investors from potential risks and is often implemented in phases based on risk levels.
These are regulatory steps to monitor trading patterns in high-risk stocks to prevent excessive speculation and ensure market stability.
A legal process initiated when a company or an individual faces severe financial distress, aiming for restructuring or liquidation under regulatory supervision.
An agreement among multiple lenders to collectively resolve financial stress in a company, ensuring a streamlined approach for recovering debt.
Pledge refers to shares held as collateral by a lender. If the borrower fails to meet obligations, the pledged shares might be at risk.
This measure is a stricter regulatory framework implemented to prevent speculative trading and maintain market integrity, applicable to high-risk stocks.
Refers to a company or stock consistently incurring financial losses over recent periods. This status can signal financial instability, so traders are advised to approach such stocks cautiously.
This occurs when more than half of a company’s total shares are pledged or used as collateral. It indicates a high dependency on borrowed capital, which might affect the company's financial flexibility and stability.
These series categorise stocks under additional regulatory scrutiny due to heightened risk factors, such as irregular trading patterns or lack of compliance. Stocks in these series are often moved to the Trade-to-Trade (T2T) segment, where every trade must result in delivery, restricting speculative and intraday trading.
This indicates that the company has not paid the mandatory annual fee required to maintain its listing on the exchange. Non-compliance can result in delisting and is a red flag for potential investors.
When derivative trading in a stock is phased out of Futures and Options, it indicates regulatory actions to control excessive speculation or risks associated with the scrip.
The stock's Price-to-Earnings ratio exceeds 50, based on its performance over the past four quarters. A high PE ratio might indicate overvaluation, making evaluating the stock's fundamentals essential.
The company's Earnings Per Share (EPS) have been zero over the last four quarters. This signifies that the company has not generated any profit to attribute to shareholders, which can be a warning sign for investors.
Fewer than 100 distinct Permanent Account Numbers (PANs) have traded in the stock over the past 30 days. Low participation indicates limited interest or liquidity, which could increase trading risks.
Market-making ensures liquidity for SME (Small and Medium Enterprise) stocks. The conclusion of this period means that stock trades may now face lower liquidity or higher volatility.
Refers to an SME stock with infrequent trading activity. Such stocks might experience significant price fluctuations and limited market depth, posing higher risks to investors.
Close-to-Close Price Movement refers to the percentage change in a stock's closing price over a specific period.
This highlights that the stock price has increased or decreased by more than 25% over the past five trading days. Such rapid movements suggest heightened volatility and potential speculation.
Indicates a price fluctuation exceeding 40% over the previous 15 trading days. These changes demand caution, as they often reflect speculative activity or news-driven impacts.
The stock’s price has doubled in the past 60 trading days. While this may indicate strong momentum, it also requires a thorough evaluation of underlying reasons to avoid undue risks.
A price movement greater than 25% over the last 15 trading days. Such changes warrant careful analysis of the stock’s fundamentals and market sentiment.
This represents a price change exceeding 50% within the last month. Significant fluctuations like this can indicate speculative trading or fundamental shifts.
Highlights a price increase or decrease exceeding 90% in the last three months. Investors should investigate the reasons behind such moves before trading.
This indicates a price change of more than 25% over the last month. It could reflect high market optimism or speculative activities.
A price fluctuation exceeding 50% over the past three months may signal volatility or significant market interest.
The stock’s price has risen by over 200% in one year. While this growth may appear promising, understanding the sustainability of such performance is crucial.
A change surpassing 75% within six months, often requiring closer scrutiny to identify the causes of such significant shifts.
Indicates a doubling of the stock’s price over the past year, necessitating a review of the factors contributing to this performance.
This term refers to the percentage difference between a stock's highest and lowest prices within a specified period. It indicates volatility, helping you understand how much a stock's price fluctuated during that timeframe.
The difference between the highest and lowest prices exceeds 75% within a month, indicating significant volatility.
A more than 150% variation over three months, reflecting heightened market activity or speculative interest.
This represents a significant price difference over three months, exceeding 75%, often warranting caution in trading decisions.
The highest and lowest price difference is over 300% in one year, suggesting substantial price swings.
This indicates a 100% difference between the highest and lowest prices within six months, indicative of high volatility.
A 200% price variation in one year, often associated with speculative trades or significant market shifts.
Price changes exceeding 150% in one year may indicate underlying volatility or significant market events.
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