FAQ
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Has Challani Capital Ltd. been shortlisted under Additional Surveillance Measure (ASM)?
No, Challani Capital Ltd. has not been shortlisted under Additional Surveillance Measure (ASM).
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When did Challani Capital Ltd. exit Long-term Additional Surveillance Measure (ASM)?
Challani Capital Ltd. exited Long-term Additional Surveillance Measure (ASM) on 03 Jan, 2025.
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When did Challani Capital Ltd. exit Short-term Additional Surveillance Measure (ASM)?
Challani Capital Ltd. exited Short-term Additional Surveillance Measure (ASM) on 30 Oct, 2023.
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Has Challani Capital Ltd. been shortlisted under Graded Surveillance Measure (GSM)?
No, Challani Capital Ltd. has not been shortlisted under Graded Surveillance Measure (GSM).
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When did Challani Capital Ltd. exit Graded Surveillance Measure (GSM)?
Challani Capital Ltd. exited Graded Surveillance Measure (GSM) on 09 Dec, 2024.
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What is Graded Surveillance Measure (GSM)?
Graded Surveillance Measure (GSM) is one of many surveillance measures implemented, by SEBI and Exchanges, 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.
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What are the main objectives of Graded Surveillance Measure (GSM)?
- Alert and advice investors to be extra cautious while dealing in these securities.
- Advise market participants to carry out necessary due diligence while dealing in these securities.
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Where can more details on Graded Surveillance Measure (GSM) be found?
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Should shortlisting under Graded Surveillance Measure (GSM) be construed as an adverse action against the concerned company/entity?
The shortlisting of securities under Graded Surveillance Measure (GSM) is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company/entity.
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What are the criteria for shortlisting scrips under Graded Surveillance Measure (GSM) framework?
The detailed criteria for shortlisting & review of securities under GSM Framework is given below:
Criteria I:
The following criteria shall be made applicable for inclusion of securities under GSM Framework.
- Securities with latest available Net worth (Share Capital + Reserves & Surplus – debit balance in P&L) less than or equal to Rs. 10 crores;
- Securities with latest available Net Fixed Assets (Tangible Assets + Capital Work in Progress) less than or equal to Rs. 25 crores;
- Securities with PE greater than 2 times PE of Benchmark Index (Nifty 500) OR negative PE.
The following securities shall be excluded from the process of shortlisting of securities under GSM: - Securities where the price discovery is yet to take place as per the provision of SEBI circulars CIR/MRD/DP/01/2012 and CIR/MRD/DP/02/2012 dated January 20, 2012.
- Securities already under suspension;
- Securities on which derivative products are available;
- Securities as a part of any index (NSE or BSE);
- Public Sector Enterprises and its subsidiaries, if available;
- Securities listed during last 1 year through Initial Public Offering (IPO);
- Securities which have paid a dividend for each of the last three preceding years;
- Securities with Institutional holding greater than 10% only if the following conditions are met:
- If the promoter entity has not offloaded any share in the last 5 years;
- The current trading price of the security is within the range of High & Low price in last 3 years of the respective security.
- Securities listed through Scheme of Arrangement involving Merger / Demerger during last 1 year:
- In case of demerger, the following condition shall be applicable:
- If the parent company is under purview of GSM, the resultant demerged companies shall also attract GSM.
- If the parent company is not under purview of GSM, the resultant demerged companies shall not be part of GSM at the time of demerger and shall be considered during the subsequent quarterly review.
- In case of merger of companies, if any of the securities at time of merger are under the purview of GSM, then the same shall be continued on the resultant entity.
Criteria II:The following criteria shall be made applicable for inclusion of securities.
- Securities with full market capitalization less than Rs. 25 crore;
- Securities with PE greater than 2 times PE of Benchmark Index (Nifty 500);
- Securities with negative PE, the following should be considered:
- P/B (Price to Book) value of scrip greater than 2 times the P/B value of Benchmark Index (Nifty 500)
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What is Additional Surveillance Measure (ASM)?
Additional Surveillance Measure (ASM) is part of SEBI and the Exchanges initiative to enhance market integrity and safeguard the interest of investors. The ASM list is a list of securities that are currently getting monitored due to factors like price fluctuation, volatility, volume variance, etc.
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What are the main objectives of and Additional Surveillance Measure (ASM)?
- Alert and advice investors to be extra cautious while dealing in these securities.
- Advise market participants to carry out necessary due diligence while dealing in these securities.
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Where can more details on Additional Surveillance Measure (ASM) be found?
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Should shortlisting under Additional Surveillance Measure (ASM) be construed as an adverse action against the concerned company/entity?
The shortlisting of securities under Additional Surveillance Measure (ASM) is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company/entity.
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What are the criteria for shortlisting scrips under Additional Surveillance Measure (ASM) framework?
The shortlisting of securities for placing in Additional Surveillance Measure (ASM) framework is based on an objective criteria as jointly decided by SEBI and Exchanges covering the following market based dynamic parameters:
- High Low Variation
- Client Concentration
- Close to Close Price Variation
- Volume Variation
- Delivery Percentage
- No. of Unique PANs
- PE