Graded Surveillance Measure (GSM) - Securities Moving to GSM Stages (October 28, 2025)

Description

BSE announces movement of 6 securities into various stages of the Graded Surveillance Measure framework effective October 28, 2025.

Summary

BSE has announced the movement of 6 securities into various stages of the Graded Surveillance Measure (GSM) framework. Three securities are moving to GSM Stage I, one to Stage II, and two to Stage IV. These movements indicate heightened surveillance due to concerns related to price volatility, trading patterns, or other market integrity issues.

Key Points

• 6 securities are being moved into different GSM stages effective October 28, 2025
• Bombay Talkies Ltd (511246), Adarsh Plant Protect Ltd (526711), and Binny Mills Ltd (535620) moving to GSM Stage I
• Bharat Textiles & Proofing Industries Ltd (531029) moving to GSM Stage II
• Neelkanth Ltd (512565) and RCI Industries & Technologies Ltd (537254) moving to GSM Stage IV
• Securities may move to lower GSM stages if included in ESM or IBC frameworks

Regulatory Changes

No new regulatory framework changes. This circular represents routine application of existing GSM framework provisions for securities exhibiting characteristics warranting enhanced surveillance.

Compliance Requirements

• Trading members must be aware of GSM stage classifications for these securities
• Additional surveillance measures apply based on GSM stage (higher margins, trade-for-trade settlement, price bands, etc.)
• Investors should exercise additional caution when trading in GSM securities
• Brokers must ensure proper disclosure to clients about GSM status of these securities

Important Dates

• Effective Date: October 28, 2025 - Securities move into respective GSM stages

Impact Assessment

Market Impact: Medium - Movement to GSM stages typically results in reduced liquidity and increased trading costs for affected securities due to stricter surveillance measures like higher margins and trade-for-trade settlement.

Investor Impact: Medium - Investors holding or trading these securities will face additional restrictions and should be aware of the increased risk profile indicated by GSM classification.

Operational Impact: Low to Medium - Trading members need to update their systems and processes to reflect the new GSM stage classifications and associated trading restrictions.

Securities Details

Impact Justification

Movement of securities into GSM stages affects trading conditions and investor awareness but represents routine surveillance measures