n NISM Certifications
XV NISM Series XV
Medium

Amaze Industries Ltd., market cap ₹22 cr, index PE 20x, PB 3x. Under which scenario is it put under Graded Surveillance Mechanism (GSM)?

Practice question from NISM XV Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    PE 25x, PB 6x

  2. PE negative, PB 3x

    Correct answer

  3. C

    PE 45x, PB 2.5x

  4. D

    PE 25x, PB negative

Why this is the answer

GSM monitors low-cap companies (<₹25 cr) with negative PE or extreme PE/PB multiples. Only PE negative + PB 3x meets criteria.

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