Description

Six securities are being moved into GSM surveillance stages, with four moving to Stage I and two moving to Stage II effective from the specified date.

Summary

BSE has announced the movement of six securities into their respective Graded Surveillance Measure (GSM) stages. Four securities are moving to GSM Stage I (MSR India Ltd, Nihar Info Global Ltd, Easun Capital Markets Ltd, and Valencia Nutrition Ltd), while two securities are moving to GSM Stage II (Pratik Panels Ltd and Sybly Industries Ltd). The circular notes that securities marked with special symbols may be moving to lower GSM stages due to inclusion in ESM Framework (#) or IBC Framework ($).

Key Points

  • Four securities moving to GSM Stage I: MSR India Ltd (508922), Nihar Info Global Ltd (531083), Easun Capital Markets Ltd (542906), Valencia Nutrition Ltd (542910)
  • Two securities moving to GSM Stage II: Pratik Panels Ltd (526490), Sybly Industries Ltd (531499)
  • Securities in higher GSM stages face additional surveillance and trading restrictions
  • Special provisions exist for securities included in ESM or IBC frameworks
  • Classification alignment noted with NSE

Regulatory Changes

The GSM framework applies enhanced surveillance measures to securities exhibiting abnormal price movements or other concerning trading patterns. Movement to higher stages (Stage I to Stage II) indicates escalating concerns and results in progressively stricter trading restrictions including:

  • Periodic call auction sessions
  • Price bands restrictions
  • Additional disclosure requirements
  • Reduced trading frequency

Compliance Requirements

  • Trading members must ensure compliance with GSM stage-specific trading restrictions
  • Investors should be aware of limited liquidity and trading restrictions on these securities
  • Market participants must adhere to the applicable price bands and auction mechanisms for these stocks
  • Additional margin requirements may apply as per GSM framework guidelines

Important Dates

  • Effective Date: 2025-10-08 (circular date)
  • The stage movement is applicable from the date of the circular

Impact Assessment

Market Impact: Movement to higher GSM stages significantly impacts liquidity as these securities will face restricted trading mechanisms. Investors holding these stocks may experience difficulty in executing trades due to periodic call auctions and reduced trading sessions.

Investor Impact: Existing shareholders face potential mark-to-market losses and limited exit options. New investors are cautioned against entering positions in these securities without understanding the surveillance measures and associated risks.

Operational Impact: Trading members must update their systems to enforce GSM-specific restrictions, implement appropriate risk management controls, and ensure proper client communication regarding the trading limitations on these securities.

Impact Justification

Movement of securities into higher GSM stages indicates increased surveillance and trading restrictions, directly impacting liquidity and investor participation in these specific stocks