Graded Surveillance Measure (GSM) - Securities Moving to Different GSM Stages

Description

BSE announces movement of 7 securities across GSM Stages I through IV under the Graded Surveillance Measure framework effective October 16, 2025.

Summary

BSE has announced the movement of 7 securities into various stages of the Graded Surveillance Measure (GSM) framework. The changes include 4 securities moving to Stage I, 1 security to Stage II, 1 security to Stage III, and 1 security to Stage IV. Securities under GSM are subject to enhanced surveillance and trading restrictions based on concerns regarding price volatility, market rumors, or other risk factors.

Key Points

• 7 securities are being moved to different GSM stages effective October 16, 2025
• Stage I: Gujarat Lease Financing Ltd, Sanathnagar Enterprises Ltd, Silveroak Commercials Ltd, Decorous Investment & Trading Co Ltd
• Stage II: Ashiana Agro Industries Ltd
• Stage III: Omkar Pharmachem Ltd
• Stage IV: Digjam Ltd (highest surveillance level)
• Securities can move to lower GSM stages if included in ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code) frameworks
• GSM stages have progressively stricter trading conditions including higher margins and price bands

Regulatory Changes

The affected securities will be subject to the trading restrictions and surveillance measures applicable to their respective GSM stages. Higher GSM stages typically involve:

• Additional Surveillance Deposit (ASD) requirements
• Trade-for-trade settlement with 100% upfront margin
• Periodic call auctions only (in higher stages)
• Reduced price bands
• Physical delivery requirements

Compliance Requirements

• Trading members must ensure compliance with margin requirements for the affected securities
• Clients trading in these securities must provide 100% upfront margins
• Surveillance deposits may be required from trading members
• Physical delivery of shares is mandatory for trades in GSM securities
• No intraday trading or carry forward positions allowed

Important Dates

• Effective Date: October 16, 2025 - GSM stage changes come into effect

Impact Assessment

Market Impact: The movement of securities to higher GSM stages will result in reduced liquidity and increased trading costs for these scrips. Stage IV placement for Digjam Ltd represents the highest level of surveillance with most restrictive trading conditions.

Investor Impact: Investors holding or trading these securities will face stricter margin requirements and settlement obligations. The enhanced surveillance signals increased regulatory scrutiny and potential concerns about price manipulation or fundamental issues.

Trading Impact: All 7 securities will experience reduced trading flexibility with mandatory physical delivery and higher capital requirements, likely leading to lower trading volumes and wider bid-ask spreads.

Securities Details

Impact Justification

Affects trading conditions for 7 securities under enhanced surveillance. GSM framework imposes additional restrictions but impacts relatively small number of securities with likely limited trading volumes.