Description

BSE announces movement of 6 securities to different GSM stages, with companies moving to stages II, III, and IV based on surveillance criteria.

Summary

BSE has announced the movement of 6 securities to different stages of the Graded Surveillance Measure (GSM) framework. Four companies are moving to GSM Stage II, one to Stage III, and one to Stage IV, indicating increased surveillance and trading restrictions based on various risk parameters.

Key Points

  • 6 securities are being moved to different GSM stages effective immediately
  • 4 companies moving to GSM Stage II: Venlon Enterprises, Ace Engitech, High Street Filatex, and White Organic Retail
  • 1 company moving to GSM Stage III: Sparkle Gold Rock
  • 1 company moving to GSM Stage IV: Harmony Capital Service
  • Securities may move to lower GSM stages due to inclusion in ESM or IBC frameworks
  • Movement is based on NSE coordination where applicable

Regulatory Changes

Implementation of tiered surveillance measures with increasing restrictions at higher GSM stages, affecting trading parameters, margin requirements, and settlement conditions for the listed securities.

Compliance Requirements

  • Market participants must adhere to enhanced surveillance conditions for affected securities
  • Higher margin requirements and position limits may apply
  • Additional disclosure and reporting requirements for trades in these securities
  • Compliance with specific settlement and delivery conditions

Important Dates

  • Effective Date: September 9, 2025 (as per circular date)
  • Movement to respective GSM stages applies immediately upon notification

Impact Assessment

The movement to higher GSM stages will result in increased trading costs, reduced liquidity, and enhanced monitoring for the affected securities. Retail investors may face additional barriers to trading these stocks, while institutional investors will need to comply with stricter position and margin requirements. The measure aims to protect investor interests by flagging securities with elevated risk profiles.

Impact Justification

Movement to higher GSM stages affects trading conditions and investor access for specific securities