Graded Surveillance Measure (GSM) - List of Securities Moving into Their Respective GSM Stages

Description

BSE circular listing 7 securities moving to different GSM stages (I through IV) for enhanced surveillance monitoring effective immediately.

Summary

BSE has issued an update on securities being moved into different stages of the Graded Surveillance Measure (GSM) framework. Seven securities are being placed under enhanced surveillance across GSM Stages I through IV based on market conditions and risk parameters. The GSM framework applies progressively stricter surveillance measures as securities move through higher stages.

Key Points

• 7 securities are being moved to different GSM stages effective immediately
• 1 security (Lords Ishwar Hotels Limited) moved to GSM Stage I
• 3 securities moved to GSM Stage II: Chennai Meenakshi Multispeciality, Kachchh Minerals Ltd., and Ortel Communications Ltd.
• 2 securities moved to GSM Stage III: Mayur Floorings Ltd. and Darjeeling Ropeway Company Limited
• 1 security (Avasara Finance Limited) moved to GSM Stage IV
• Securities marked with (#) move to lower GSM stages when included in ESM Framework
• Securities marked with ($) move to lower GSM stages when included in IBC Framework

Regulatory Changes

The GSM framework implements graded surveillance with increasing restrictions at each stage. Higher GSM stages typically involve:

• Additional disclosure requirements
• Price bands and trading restrictions
• Enhanced margin requirements
• Auction settlement mechanisms in certain cases
• Trade-for-trade settlement in higher stages

Compliance Requirements

• Trading members must ensure compliance with applicable GSM stage requirements for each listed security
• Investors should be aware that securities in GSM stages may have restricted trading conditions
• Brokers must provide appropriate disclosures to clients about GSM-listed securities
• Market participants should monitor GSM stage movements for portfolio securities

Important Dates

• Effective Date: October 24, 2025 (immediate implementation)

Impact Assessment

Market Impact: Medium - The movement of securities into various GSM stages will result in enhanced surveillance and potentially reduced liquidity for the affected stocks. Investors in these securities will face additional trading restrictions and monitoring requirements.

Operational Impact: Trading in these securities will be subject to GSM stage-specific conditions including potential price bands, higher margins, and settlement restrictions. Stage IV placement for Avasara Finance Limited indicates significant surveillance concerns requiring maximum oversight.

Investor Impact: Existing and potential investors in these 7 securities should exercise caution and be aware of the enhanced surveillance measures, which may affect liquidity, pricing, and settlement processes.

Affected Securities

Impact Justification

Affects 7 securities with enhanced surveillance requirements across different GSM stages, impacting trading conditions and investor participation for these specific stocks