What Is an Additional Surveillance Deposit (ASD)?
An additional surveillance deposit, usually written ASD, is cash a buyer must post when buying a stock that sits at Stage II or above of the Graded Surveillance Measure framework. It is not a margin and it is not collateral. It is money locked with the clearing corporation for a month, in cash, earning nothing, on top of every margin already payable.
Definition
An additional surveillance deposit
is cash collected from the buyer of a security placed at GSM Stage II or above by NSE and BSE. It is 50 percent of trade value at Stage II and 100 percent at Stages III and IV, is debited on T+1, is interest free, and is retained for one month. Source: NSE, Graded Surveillance Measure FAQ.
Who pays the additional surveillance deposit, and how much?
The buyer pays. NSE's GSM FAQ is explicit that the buyer of the security is liable for the additional surveillance deposit on securities shortlisted under Stage II and above, and that the exchange collects it from the buying trading member. There is no seller-side equivalent.
The amount is set by the GSM stage:
| GSM stage | Surveillance action | ASD |
|---|---|---|
| I | 100 percent margin, price band of 5 percent or lower | None |
| II | Trade for trade, price band of 5 percent or lower | 50 percent of trade value |
| III | Trade for trade, trading permitted once a week | 100 percent of trade value |
| IV | Trade for trade, once a week, no upward movement | 100 percent of trade value |
The deposit is debited on a T+1 basis from the trading member's primary clearing account for the capital market segment, by NSE Clearing Limited, and must be paid in cash only.
100 percent of trade value
Additional surveillance deposit payable by the buyer at GSM Stage III and Stage IV, in cash, on top of all existing margins
Source: NSE, Graded Surveillance Measure FAQ, 15 April 2025
The three details that catch people out
It applies to everyone. NSE's FAQ answers the institutional question directly: ASD is applicable to all categories of client, and the exchange collects it from the buying trading member. There is no institutional exemption.
It is not exposure. ASD shall not be considered for giving further exposure. A buyer who posts 100 percent of trade value in cash does not get that cash counted toward anything else. It sits idle and interest free.
It stacks. ASD is over and above existing margins or deposits levied by the exchanges. At Stage III, a buyer is paying trade-for-trade settlement, weekly-only trading, the normal margin, and 100 percent of trade value in cash. Combined, that is what makes the higher GSM stages effectively illiquid rather than merely restricted.
When does the money come back?
ASD collected on securities retained at Stage II and above is retained for a period of one month and then released on a published schedule. NSE's FAQ sets out the calendar: a deposit collected in January is released on the second Monday of March, February's on the second Monday of April, and so on down the year. Release for securities that leave the GSM framework at a quarterly review is intimated separately.
Default has consequences of its own. NSE states that in case of default in payment of ASD, appropriate penal action may be initiated against the concerned trading member.
Reading an ASD alongside the filing record
The additional surveillance deposit is a market-structure fact, not a disclosure. It tells you the exchange has placed a security at GSM Stage II or above, which is a judgement about price versus fundamentals rather than about any specific trade or shareholder.
What it does not tell you is who owns the stock or what changed. That is a filings question:
- The quarterly shareholding pattern for promoter, FII and DII movement across the period.
- Encumbrance disclosures for pledges and pledge invocation, which often explain volume that surveillance frameworks react to.
- The ESM framework and the ASM list, which run alongside GSM and can apply at the same time.
Flock publishes the underlying exchange and regulator filings with their dates and source links. The surveillance stage and the deposit that comes with it are the exchanges' call. Not investment advice.
Frequently asked questions
Who pays the additional surveillance deposit?
The buyer. NSE's GSM FAQ states that the buyer of the security is liable to pay the ASD for securities shortlisted under Stage II and above, and that it is collected from the buying trading member. It applies to all categories of client, including institutional investors. Source: NSE, Graded Surveillance Measure FAQ, 15 April 2025.
How much is the additional surveillance deposit?
It depends on the GSM stage. At Stage II the ASD is 50 percent of trade value. At Stage III and Stage IV it is 100 percent of trade value. The deposit is over and above existing margins or deposits levied by the exchanges. Source: NSE, Graded Surveillance Measure FAQ, 15 April 2025.
When is the additional surveillance deposit refunded?
ASD collected on securities retained under GSM Stage II and above is retained for a period of one month and released on a published schedule, on the second Monday of the month two months after collection. It is interest free. Source: NSE, Graded Surveillance Measure FAQ, 15 April 2025.
Can the additional surveillance deposit be used as trading margin?
No. NSE's FAQ states that ASD shall not be considered for giving further exposure, and that it is over and above the existing margins or deposits levied by the exchanges on transactions in such securities. Cash posted as ASD is locked, not collateral. Source: NSE, Graded Surveillance Measure FAQ.
Flock tracks these filings, sourced, dated, and linked back to the original. See what smart-money entities disclosed, without the guesswork about what it means.
Disclosures shown are public regulatory filings. Data may be delayed or incomplete. Smart-money entities may no longer hold positions shown. Not investment advice.