Description

BSE updates the list of securities being moved to different stages of Graded Surveillance Measure (GSM) framework, affecting 8 companies across GSM Stages I through IV.

Summary

BSE has issued a circular updating the list of securities being moved to different stages under the Graded Surveillance Measure (GSM) framework. A total of 8 securities are being moved across four GSM stages (I through IV), with each stage representing increasing levels of surveillance and trading restrictions. The GSM framework is designed to alert investors about securities that exhibit abnormal price movements or other concerning characteristics.

Key Points

  • 2 securities moving to GSM Stage I: Vintage Securities Ltd and Mayur Floorings Ltd
  • 2 securities moving to GSM Stage II: Velan Hotels Ltd and Paos Industries Ltd
  • 2 securities moving to GSM Stage III: Ace Engitech Ltd and Digjam Ltd
  • 2 securities moving to GSM Stage IV: Coromandel Engineering Company Ltd and Aar Shyam India Investment Company Ltd
  • Securities marked with specific symbols may be moving to lower GSM stages due to inclusion in ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code) frameworks
  • Digjam Ltd is marked with an asterisk indicating alignment with NSE classification

Affected Securities Details

GSM Stage I

  • Vintage Securities Ltd (Security Code: 531051, ISIN: INE153C01015)
  • Mayur Floorings Ltd (Security Code: 531221, ISIN: INE262W01012)

GSM Stage II

  • Velan Hotels Ltd (Security Code: 526755, ISIN: INE548D01014)
  • Paos Industries Ltd (Security Code: 530291, ISIN: INE791C01012)

GSM Stage III

  • Ace Engitech Ltd (Security Code: 530669, ISIN: INE035401020)
  • Digjam Ltd (Security Code: 539979, ISIN: INE731U01028) - As per NSE

GSM Stage IV

  • Coromandel Engineering Company Ltd (Security Code: 533167, ISIN: INE312J01012)
  • Aar Shyam India Investment Company Ltd (Security Code: 542377, ISIN: INE512R01010)

Regulatory Changes

The GSM framework applies progressive surveillance measures with each stage having specific trading restrictions:

  • Higher stages typically involve additional disclosure requirements
  • Increased margin requirements for trading
  • Price bands may be reduced
  • Trade-for-trade settlement with no intraday positions
  • Additional surveillance and monitoring by the exchange

Compliance Requirements

  • Investors and traders should be aware that securities under GSM are subject to enhanced surveillance
  • Trading members must ensure compliance with additional margin and settlement requirements applicable to each GSM stage
  • Market participants should review the specific restrictions applicable to each GSM stage before trading these securities
  • Investors are advised to exercise additional caution and conduct thorough due diligence before investing in GSM securities

Important Dates

  • Circular Date: October 15, 2025
  • Effective Date: As per exchange notification (typically effective immediately or from next trading session)

Impact Assessment

Market Impact: Medium - The movement of these 8 securities to various GSM stages will result in increased trading restrictions and margin requirements, which may impact liquidity and investor participation in these stocks.

Investor Impact: Investors holding or planning to trade these securities should be aware of the enhanced surveillance status, which signals potential concerns about price volatility, corporate governance, or other risk factors. Higher GSM stages (III and IV) indicate more serious concerns.

Trading Impact: Securities in higher GSM stages face stricter trading conditions including higher margins, trade-for-trade settlement, and tighter price bands, which can significantly reduce trading volumes and liquidity.

Risk Alert: The GSM classification serves as an important risk indicator for market participants, suggesting the need for enhanced due diligence and caution when dealing with these securities.

Impact Justification

Movement of securities across GSM stages indicates heightened surveillance due to price volatility or other concerns, requiring investors to exercise additional caution when trading these securities.