Description

BSE updates Graded Surveillance Measure stages for 7 securities, with movements across GSM Stages I through IV effective October 24, 2025.

Summary

BSE has announced the movement of 7 securities into different stages of the Graded Surveillance Measure (GSM) framework. The affected securities are being placed in GSM Stages I through IV, with each stage representing increasing levels of surveillance and trading restrictions. Lords Ishwar Hotels Limited moves to Stage I, Chennai Meenakshi Multispecial, Kachchh Minerals Ltd., and Ortel Communications Ltd. move to Stage II, Mayur Floorings Ltd. and Darjeeling Ropeway Company Limited move to Stage III, and Avasara Finance Limited moves to Stage IV.

Key Points

  • 7 securities are being moved to different GSM stages effective October 24, 2025
  • 1 security moving to GSM Stage I: Lords Ishwar Hotels Limited (530065)
  • 3 securities moving to GSM Stage II: Chennai Meenakshi Multispecial (523489), Kachchh Minerals Ltd. (531778), Ortel Communications Ltd. (539015)
  • 2 securities moving to GSM Stage III: Mayur Floorings Ltd. (531221), Darjeeling Ropeway Company Limited (539770)
  • 1 security moving to GSM Stage IV: Avasara Finance Limited (511730)
  • Securities marked with asterisk (*) indicate alignment with NSE classification
  • Framework allows for downward movement if securities are included in ESM or IBC frameworks

Regulatory Changes

The GSM framework continues to apply progressive surveillance measures based on security-specific risk parameters. Higher GSM stages typically involve:

  • Stage I: Initial surveillance with enhanced monitoring
  • Stage II: Additional disclosure requirements and price bands
  • Stage III: Further restrictions including trade-for-trade settlement
  • Stage IV: Maximum surveillance with stringent trading conditions

Securities can move to lower GSM stages if they are included in the Enhanced Surveillance Measure (ESM) Framework or Insolvency and Bankruptcy Code (IBC) Framework.

Compliance Requirements

  • Investors trading in these securities must comply with stage-specific requirements including potential 100% upfront margin requirements
  • Trade-for-trade settlement may be applicable for higher GSM stages
  • Price bands and circuit filters specific to each GSM stage will apply
  • Additional disclosure and due diligence requirements for market participants
  • Brokers must ensure clients are aware of enhanced surveillance status

Important Dates

  • Effective Date: October 24, 2025 - New GSM stage classifications become applicable

Impact Assessment

Market Impact: The movement of these 7 securities to various GSM stages will result in increased trading restrictions and reduced liquidity. Institutional participation may decline due to enhanced compliance requirements.

Investor Impact: Retail investors will face higher margin requirements and potential difficulty in executing trades. The trade-for-trade settlement in higher stages eliminates intraday trading opportunities.

Liquidity Impact: Securities in higher GSM stages typically experience reduced trading volumes and wider bid-ask spreads, making it more challenging for investors to enter or exit positions.

Operational Impact: Brokers and trading members must update their systems to reflect the new GSM classifications and ensure proper risk management controls are in place for these securities.

Impact Justification

Affects 7 securities with enhanced surveillance measures that impact trading conditions and investor participation, but limited to specific stocks with existing compliance concerns