Description

BSE announces movement of 5 securities into different GSM stages, with companies moving to Stages I, III, and IV for enhanced surveillance.

Summary

BSE has announced the movement of 5 securities into different stages of the Graded Surveillance Measure (GSM) framework. Two securities are moving to GSM Stage I, one to Stage III, and two to Stage IV, effective from the date of circular issuance. The GSM framework is designed to alert investors about securities that demonstrate abnormal price movements or other concerning trading patterns.

Key Points

  • 5 securities are being placed under enhanced surveillance measures
  • Bharat Textiles & Proofing Ind (531029) moved to GSM Stage I
  • Boston Bio Systems Ltd. (531458) moved to GSM Stage I
  • Aviva Industries Ltd. (512109) moved to GSM Stage III
  • Prashant India Ltd. (519014) moved to GSM Stage IV
  • Capfin India Limited (539198) moved to GSM Stage IV
  • Securities marked with (#) move to lower GSM stages due to ESM Framework inclusion
  • Securities marked with ($) move to lower GSM stages due to IBC Framework inclusion

Regulatory Changes

No new regulatory changes introduced. This circular implements the existing GSM framework which applies progressive surveillance measures based on specific criteria including price volatility, market capitalization, trading volumes, and corporate governance parameters.

Compliance Requirements

  • Trading members must be aware of the GSM stage classification of these securities
  • Investors should note the enhanced surveillance status when trading these securities
  • Higher GSM stages typically involve additional trading restrictions such as:
    • Price bands restrictions
    • Trade-for-trade settlement
    • Additional margin requirements
    • Periodic call auction sessions
  • Market participants should review BSE’s GSM framework guidelines for stage-specific obligations

Important Dates

  • Effective Date: October 7, 2025 (date of circular issuance)

Impact Assessment

Market Impact: Medium - The movement of securities to higher GSM stages will result in reduced liquidity and trading activity for the affected stocks. Stage IV securities face the most stringent restrictions.

Investor Impact: Medium to High for holders of affected securities - Trading restrictions may limit exit opportunities and increase transaction costs. The surveillance measures serve as a caution signal for potential investors.

Operational Impact: Low to Medium - Brokers and trading members need to ensure their systems recognize the GSM status and apply appropriate controls for these securities.

Liquidity Impact: Higher GSM stages progressively reduce liquidity through trade-for-trade settlement requirements and stricter price bands, particularly affecting the two Stage IV securities (Prashant India Ltd. and Capfin India Limited).

Impact Justification

Movement to GSM stages imposes trading restrictions and increased surveillance on affected securities, impacting liquidity and investor participation for these specific stocks.