Description

BSE announces movement of 20 securities across different GSM stages including new entries and stage progressions effective from the specified date.

Summary

BSE has announced the movement of 20 securities into various stages of the Graded Surveillance Measure (GSM) framework. The list includes 1 security moving to Stage 0 (due to ESM framework inclusion), 2 securities entering Stage I, 9 securities moving to Stage II, 4 securities advancing to Stage III, and 4 securities progressing to Stage IV. These movements indicate heightened surveillance and trading restrictions based on specific criteria.

Key Points

  • Total 20 securities are being moved across different GSM stages
  • Venlon Enterprises Ltd (524038) moved to Stage 0 due to inclusion in ESM Framework
  • 2 securities entering GSM Stage I: Cindrella Financial Services Ltd and Ortel Communications Limited
  • 9 securities moving to GSM Stage II including Shree Rajasthan Syntex, Relic Technologies, and Mayur Floorings
  • 4 securities advancing to GSM Stage III: Ganesh Holdings, Photon Capital Advisors, Avasara Finance, and Paos Industries
  • 4 securities progressing to GSM Stage IV: SJ Corporation, Sashwat Technocrats, Ace Engitech, and Omkar Pharmachem
  • Special markings indicate securities moving to lower GSM stages due to ESM or IBC framework inclusion
  • Ortel Communications Limited movement is as per NSE directive

Regulatory Changes

The GSM framework applies progressive surveillance measures across stages (0 to IV), with each stage imposing stricter trading conditions. Securities are placed or moved between stages based on surveillance parameters including price volatility, market capitalization, trading volumes, and corporate governance concerns. Movement to higher stages typically involves additional restrictions such as reduced price bands, trade-for-trade settlement, and disclosure requirements for large trades.

Compliance Requirements

  • Trading members must ensure compliance with stage-specific trading restrictions for affected securities
  • Investors trading in these securities must be aware of applicable Additional Surveillance Deposit (ASD) requirements
  • Brokers must provide appropriate risk disclosures to clients trading in GSM securities
  • Market participants must adhere to reduced price bands applicable to respective GSM stages
  • All trades in higher GSM stages may require upfront margin and trade-for-trade settlement

Important Dates

  • Circular Date: October 23, 2025
  • Effective Date: To be specified by exchange (typically T+1 or T+2 from circular date)

Impact Assessment

Trading Impact: Securities moving to higher GSM stages will face increased trading restrictions including reduced price bands, mandatory disclosures, and potential trade-for-trade settlement requirements, which may reduce liquidity and increase transaction costs.

Investor Impact: Retail and institutional investors holding these securities will experience limited trading flexibility. Higher stages (III and IV) may significantly impact exit opportunities and require additional margin requirements.

Market Impact: The classification of 20 securities across multiple GSM stages reflects ongoing surveillance concerns and may signal increased market risk for these specific counters. Investors should exercise heightened caution when trading these securities and conduct thorough due diligence before taking positions.

Impact Justification

Affects 20 securities with varying levels of surveillance restrictions, directly impacting trading conditions and investor participation across multiple GSM stages