Description
BSE circular listing 20 securities moving to different GSM stages, including companies moving to Stages I, II, III, and IV surveillance measures.
Summary
BSE has issued a circular detailing 20 securities that are moving to various stages of the Graded Surveillance Measure (GSM) framework. The securities are being moved to GSM Stages I through IV, with one security (Indergiri Finance Ltd) moving to Stage 0 due to inclusion in the ESM framework.
Key Points
- 20 securities are being moved to different GSM stages
- 2 securities moving to GSM Stage I
- 8 securities moving to GSM Stage II
- 8 securities moving to GSM Stage III
- 1 security moving to GSM Stage IV
- 1 security moving to GSM Stage 0 (due to ESM inclusion)
- GSM framework applies progressive surveillance measures based on risk assessment
Regulatory Changes
- Implementation of graded surveillance measures across multiple securities
- Progressive trading restrictions based on GSM stage classification
- Enhanced monitoring and reporting requirements for affected securities
Compliance Requirements
- Trading members must comply with GSM-specific trading restrictions
- Enhanced due diligence requirements for transactions in GSM securities
- Mandatory risk disclosure to clients trading in GSM securities
- Compliance with position limits and margin requirements specific to each GSM stage
Important Dates
- Circular date: August 12, 2025
- Implementation: As per BSE’s GSM framework guidelines
Impact Assessment
- Trading Impact: Progressive restrictions on trading activities for listed securities
- Liquidity Impact: Reduced liquidity due to enhanced surveillance measures
- Investor Impact: Additional compliance requirements and risk disclosures for retail and institutional investors
- Market Impact: Enhanced market integrity through risk-based surveillance measures
Impact Justification
Medium impact as GSM stages impose trading restrictions affecting liquidity and investor access for 20 securities across multiple stages