Description

Four securities are being moved to different GSM stages, including Shree Manufacturing and Eurotex Industries to Stage I, Space Incubatrics to Stage III, and Yaari Digital to Stage IV.

Summary

BSE has announced the movement of four securities into different stages of the Graded Surveillance Measure (GSM) framework. Two companies are being moved to GSM Stage I, one to Stage III, and one to Stage IV, effective from the date of this circular.

Key Points

  • Shree Manufacturing Company Ltd (503863, INE632A01012) moved to GSM Stage I
  • Eurotex Industries and Exports Ltd (521014, INE022C01012) moved to GSM Stage I
  • Space Incubatrics Technologies Ltd (541890, INE797Z01010) moved to GSM Stage III
  • Yaari Digital Integrated Services Ltd (533520, INE126M01010) moved to GSM Stage IV (as per NSE)
  • Securities marked with (#) move to lower GSM stages due to ESM Framework inclusion
  • Securities marked with ($) move to lower GSM stages due to IBC Framework inclusion

Regulatory Changes

No new regulatory changes introduced. This circular implements the existing GSM framework which applies graded surveillance measures to securities based on specific criteria to protect investor interests.

Compliance Requirements

  • Trading members must note the GSM stage classification of these securities
  • Enhanced disclosure requirements apply based on GSM stage
  • Price bands and other trading restrictions specific to each GSM stage will be applicable
  • Investors should be made aware of the surveillance status before trading

Important Dates

  • Effective Date: October 31, 2025
  • The GSM stage changes are applicable immediately from the date of this circular

Impact Assessment

Market Impact: Medium - The movement to higher GSM stages typically results in reduced liquidity and stricter trading conditions for the affected securities. Stage IV classification for Yaari Digital indicates the highest level of surveillance concern.

Investor Impact: Investors in these securities will face additional restrictions including potential price bands, higher margin requirements, and trade-for-trade settlement depending on the GSM stage.

Operational Impact: Trading members need to update their systems to reflect the new GSM classifications and ensure appropriate risk management measures are in place for clients trading these securities.

Impact Justification

Movement of securities to GSM stages affects trading conditions and liquidity for the listed companies, requiring investor awareness but limited broader market impact