Description

BSE announcement of securities being moved to different GSM stages for enhanced surveillance, with 2 securities moving to Stage II and 4 securities moving to Stage IV.

Summary

BSE has announced the movement of 6 securities into different stages of the Graded Surveillance Measure (GSM) framework. Two securities have been moved to GSM Stage II, while four securities have been moved to the more restrictive GSM Stage IV. The GSM framework is designed to enhance market integrity and investor protection through increased surveillance of securities exhibiting abnormal trading patterns.

Key Points

  • Paos Industries Ltd (530291) and Popees Cares Ltd (530565) moved to GSM Stage II
  • Sashwat Technocrats Ltd (506313), Pioneer Agro Extracts Ltd (519439), Ashoka Refineries Ltd (526983), and G-Tech Info-Training Ltd (532139) moved to GSM Stage IV
  • Securities may move to lower GSM stages if included in ESM or IBC frameworks
  • Stage IV represents higher surveillance level with more stringent trading restrictions than Stage II

Regulatory Changes

Securities have been reclassified under the GSM framework based on surveillance criteria. Stage II securities face moderate surveillance measures, while Stage IV securities are subject to enhanced monitoring with stricter trading restrictions including 5% price band, 100% margin requirements, and trade-for-trade settlement.

Compliance Requirements

  • Brokers must apply appropriate margin requirements for GSM securities
  • Trading members need to ensure compliance with price band restrictions
  • Investors must deposit 100% margin upfront for Stage IV securities
  • All trades in GSM Stage IV securities to be settled on trade-for-trade basis

Important Dates

  • Effective Date: September 2, 2025
  • Circular Issue Date: September 2, 2025

Impact Assessment

The movement of securities into GSM stages will restrict trading activity and liquidity for affected stocks. Stage IV securities face significant trading constraints with 5% price bands and 100% margin requirements, potentially reducing speculative trading. Investors holding these securities may experience reduced liquidity and increased trading costs. The measures aim to protect investors from excessive volatility and price manipulation in these securities.

Impact Justification

GSM framework placement affects trading but is routine surveillance measure for market integrity