Graded Surveillance Measure (GSM) - List of Securities Moving Into Their Respective GSM Stages

Description

BSE notification regarding six securities moving into GSM Stage I and Stage II under the Graded Surveillance Measure framework as of October 8, 2025.

Summary

BSE has issued a notification regarding the movement of six securities into their respective Graded Surveillance Measure (GSM) stages. Four securities are moving into GSM Stage I, and two securities are moving into GSM Stage II. This measure is part of BSE’s ongoing surveillance framework to monitor securities exhibiting abnormal price movements or volatility patterns.

Key Points

• Four securities moving to GSM Stage I: MSR India Ltd, Nihar Info Global Ltd, Easun Capital Markets Ltd, and Valencia Nutrition Ltd
• Two securities moving to GSM Stage II: Pratik Panels Ltd and Sybly Industries Ltd
• GSM framework applies progressive surveillance measures based on security behavior
• Securities marked with special symbols may move to lower GSM stages due to inclusion in ESM or IBC frameworks
• Information aligned with NSE surveillance measures

Regulatory Changes

The GSM framework imposes graded restrictions on securities based on their stage:

Stage I Restrictions:

• Enhanced reporting requirements
• Additional disclosure obligations
• Increased monitoring by exchange

Stage II Restrictions:

• More stringent surveillance measures
• Further trading restrictions may apply
• Additional compliance requirements for listed entities

Special provisions exist for securities moving to lower GSM stages when included in Enhanced Surveillance Measure (ESM) or Insolvency and Bankruptcy Code (IBC) frameworks.

Compliance Requirements

• Listed companies must comply with enhanced disclosure requirements applicable to their GSM stage
• Investors should be aware of additional surveillance measures when trading these securities
• Brokers must ensure proper risk disclosures to clients trading in GSM securities
• Companies in GSM stages may need to provide additional periodic disclosures to the exchange

Important Dates

• Effective Date: October 8, 2025
• The GSM stage assignment takes effect immediately upon notification

Impact Assessment

Market Impact:

• Enhanced surveillance may lead to reduced liquidity in affected securities
• Increased scrutiny could impact investor sentiment and trading volumes
• Price discovery mechanisms may be affected by additional restrictions

Operational Impact:

• Trading members need to update their systems to reflect GSM stage classifications
• Risk management systems should incorporate GSM-specific requirements
• Investor awareness programs may be required for clients holding or trading these securities

Investor Impact:

• Retail and institutional investors face additional disclosures and potential trading restrictions
• Higher margins or circuit limits may apply to GSM securities
• Increased due diligence required before investing in these stocks

Affected Securities Details

Impact Justification

Movement into GSM stages indicates enhanced surveillance on these securities which affects trading operations and investor participation, though limited to six specific stocks