Description

BSE announces movement of 6 securities into GSM Stage I and Stage II effective October 8, 2025, including MSR India, Nihar Info Global, Easun Capital Markets, Valencia Nutrition, Pratik Panels, and Sybly Industries.

Summary

BSE has announced the movement of 6 securities into their respective Graded Surveillance Measure (GSM) stages effective October 8, 2025. 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). GSM is a market safety mechanism designed to alert investors about securities with abnormal price movements or other risk factors.

Key Points

  • 4 securities moved to GSM Stage I: MSR India (508922), Nihar Info Global (531083), Easun Capital Markets (542906), Valencia Nutrition (542910)
  • 2 securities moved to GSM Stage II: Pratik Panels (526490), Sybly Industries (531499)
  • Securities in higher GSM stages face stricter trading conditions including reduced price bands and trade-for-trade settlement
  • Framework notes that securities may move to lower GSM stages if included in ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code) frameworks
  • Alignment with NSE GSM framework as indicated by asterisk notation

Regulatory Changes

No new regulatory framework changes. This circular represents routine application of existing GSM framework which uses a graded approach to surveillance based on various risk parameters including price volatility, delivery percentage, and client concentration.

Compliance Requirements

  • Trading members must inform clients about the GSM status of these securities
  • Investors trading in these securities should be aware of enhanced surveillance conditions
  • Higher margin requirements may apply for positions in GSM securities
  • Trade-for-trade settlement with 100% upfront margin collection applies in higher GSM stages
  • No intraday trading permitted for securities in GSM Stage II and above

Important Dates

  • Effective Date: October 8, 2025 - Securities move into respective GSM stages

Impact Assessment

Trading Impact: Securities moving to GSM stages will experience reduced liquidity due to stricter trading conditions. Stage II securities face more severe restrictions including mandatory trade-for-trade settlement and no intraday leverage.

Investor Impact: Retail investors holding these securities should be aware of increased volatility risks and reduced exit flexibility. Higher margin requirements will increase capital costs for trading these securities.

Market Impact: The movement to GSM stages serves as a warning signal to the broader market about potential concerns with these securities, which may lead to further price volatility or reduced investor interest until underlying issues are resolved or securities demonstrate improved trading characteristics.

Impact Justification

Movement to GSM stages affects trading conditions for 6 securities, potentially restricting liquidity and increasing scrutiny for these stocks to protect investor interests