Why is buying restricted for GSM stage 2 and above stocks?

Buying is restricted for GSM (Graded Surveillance Measure) stage 2 and above stocks because these are considered high-risk stocks that have been flagged by the stock exchange for possible price manipulation or other irregularities. By restricting buying, the exchange is trying to reduce the risk of further price volatility or other issues that could harm investors. This restriction is usually temporary, and the stock will typically return to normal trading once the issues that led to the GSM designation are resolved. It's important for investors to be aware of these restrictions and to be cautious when investing in stocks that have been flagged for GSM.

Clients will be unable to purchase stocks in GSM stage 2 or higher. These stocks necessitate an Additional Surveillance Deposit (ASD) of at least 100% of the trade value. Even after the stock is sold, the exchange will keep the ASD margin blocked for at least two months.

The restrictions apply only to new purchases made under the Tiqs policy. Clients who have GSM stage 2 or higher stock in their account can still sell the stock from holdings.

Click here to know more about GSM.