Can I sell a stock that is under ASM or GSM?

Yes, you can sell stocks under ASM or GSM. However, for GSM stocks in higher stages (Stage 3 and above), trading is only allowed once a week on specific trading days. ASM stocks are available for trading on every trading day.

Why is my buy order getting rejected for GSM stock?

This usually happens because of two reasons:

Is a stock in the ASM list bad?

t necessarily. A fundamentally strong company can also appear on the ASM list because the company's price increased rapidly in a short period of time (high volatility). It is a surveillance measure and not a punishment. However, a stock in the GSM list is considered riskier as the trading behaviour or price movement may not be in line with the fundamentals or compliance metrics and hence attracts stricter regulatory controls.

How long does a stock stay in ASM or GSM?

There is no specific time duration. SEBI and exchanges periodically review the lists (sometimes weekly, fortnightly or quarterly). A stock will only exit the framework if it satisfies the criteria for exit, i.e. reduced volatility for ASM, GSM exit will occur if the stock no longer has abnormal price/volume criteria over review periods. It may take from a few weeks to several months.

Can I pledge ASM/GSM stocks for margin?

No. Most brokers do not allow ASM/GSM stocks as collateral, or they have very high haircuts (often 100%) because of the high risk. This is the policy of brokers, not mandated by SEBI. If one of the stocks you have already pledged will be added to these lists, your broker will probably reduce your collateral value (the haircut will be 100%), and you might get a margin call to add funds to your account.