What are surveillance measures and risks associated with them?

What are Surveillance Measures?
These are regulatory tools used by bodies like SEBI (Securities and Exchange Board of India) and exchanges to monitor and control highly volatile or suspicious stocks, preventing market manipulation and protecting investors. Examples include:
Graded Surveillance Measures (GSM): A multi-stage system with increasing restrictions as volatility rises.
Additional Surveillance Measures (ASM): Focuses on price fluctuation, volume variance, and illiquidity.
Enhanced Surveillance Measures (ESM): Targets micro-small companies to ensure informed decisions.

Risks Associated with Surveillance Measures:
Investor Caution: Acts as a warning sign for potential high risk.
Order Rejection: Same-day buy/sell orders rejected in T2T stocks.
Liquidity Issues: Reduced trading frequency (e.g., once a week).
Trading Restrictions: Higher margins, blocked collateral, or inability to buy in higher stages.
Unsuitability for Speculation: These stocks become less suitable for short-term trading.