Description
Two securities moved to higher GSM stages - Shashank Traders Ltd to GSM Stage II and Adline Chem Lab Ltd to GSM Stage III.
Summary
BSE has updated the Graded Surveillance Measure (GSM) list, moving two securities to higher surveillance stages. Shashank Traders Ltd has been moved to GSM Stage II, while Adline Chem Lab Ltd has been moved to GSM Stage III, indicating increased regulatory scrutiny and trading restrictions.
Key Points
- Shashank Traders Ltd (Security Code: 540221, ISIN: INE508R01018) moved to GSM Stage II
- Adline Chem Lab Ltd (Security Code: 524604, ISIN: INE276T01018) moved to GSM Stage III
- Securities in GSM framework face enhanced surveillance and trading restrictions
- Higher GSM stages indicate greater regulatory concern about price movements or trading patterns
Regulatory Changes
The securities have been subject to enhanced surveillance measures under BSE’s GSM framework, which involves:
- Increased margin requirements for trading
- Periodic call auctions instead of continuous trading
- Enhanced disclosure requirements
- Closer monitoring of price and volume movements
Compliance Requirements
- Investors trading in these securities must comply with enhanced margin requirements
- Market participants should be aware of modified trading mechanisms
- Companies must ensure timely compliance with enhanced disclosure norms
- Brokers need to inform clients about GSM restrictions
Important Dates
- Effective Date: August 21, 2025
- List updated as per BSE surveillance review
Impact Assessment
The movement to higher GSM stages typically results in:
- Reduced trading volumes due to higher margins and restrictions
- Increased volatility during periodic call auctions
- Potential impact on stock liquidity
- Enhanced investor awareness and caution regarding these securities
- Possible impact on institutional participation due to compliance requirements
Impact Justification
Affects specific securities with enhanced surveillance measures that may impact trading volumes and investor confidence