Description

Four securities are being moved to different GSM stages: two to Stage I, one to Stage III, and one to Stage IV effective from the specified date.

Summary

BSE has announced the movement of four securities into their respective Graded Surveillance Measure (GSM) stages. Two companies are moving to Stage I (Shree Manufacturing Company Ltd and Eurotex Industries and Exports Ltd), one to Stage III (Space Incubatrics Technologies Ltd), and one to Stage IV (Yaari Digital Integrated Services Ltd). GSM is a progressive surveillance framework with increasing restrictions at higher stages.

Key Points

  • Shree Manufacturing Company Ltd (Security Code: 503863, ISIN: INE632A01012) - Moving to GSM Stage I
  • Eurotex Industries and Exports Ltd (Security Code: 521014, ISIN: INE022C01012) - Moving to GSM Stage I
  • Space Incubatrics Technologies Ltd (Security Code: 541890, ISIN: INE797Z01010) - Moving to GSM Stage III
  • Yaari Digital Integrated Services Ltd (Security Code: 533520, ISIN: INE126M01010) - Moving to GSM Stage IV (as per NSE)
  • Securities can move to lower GSM stages if included in ESM Framework (marked #) or IBC Framework (marked $)

Regulatory Changes

No new regulatory changes introduced. This circular implements the existing Graded Surveillance Measure framework which applies progressive surveillance and trading restrictions based on securities’ risk profile and market behavior.

Compliance Requirements

  • Trading members must be aware of the GSM stage applicable to these securities
  • Enhanced disclosure requirements and additional margins apply based on GSM stage
  • Stage IV securities face the most stringent restrictions including reduced price bands and trade-for-trade settlement
  • Investors should review GSM framework guidelines for specific trading conditions at each stage

Important Dates

  • Effective Date: 2025-10-31 (circular issuance date, implementation likely from next trading session)

Impact Assessment

Trading Impact: Movement to higher GSM stages results in stricter trading conditions including additional surveillance deposit requirements, reduced position limits, and trade-for-trade settlement at higher stages. Stage IV placement for Yaari Digital Integrated Services Ltd indicates maximum surveillance with severe trading restrictions.

Liquidity Impact: Securities under GSM typically experience reduced liquidity due to trading restrictions. Stage III and IV securities face significant liquidity constraints.

Investor Impact: Existing investors in these securities should be aware of increased margins, potential difficulty in exiting positions, and heightened regulatory scrutiny. New investors should exercise caution and understand the surveillance framework before trading.

Market Perception: GSM placement often signals concerns about price volatility, corporate governance issues, or other risk factors, potentially affecting investor sentiment negatively.

Impact Justification

GSM stage movements significantly impact trading conditions for affected securities. Stage IV placement for YAARIDIGIT indicates highest surveillance level with severe trading restrictions. Medium importance as this affects only 4 securities but high impact for investors holding these stocks.