Description

BSE announces movement of 9 securities into various GSM stages (I, II, and IV) as part of enhanced surveillance measures.

Summary

BSE has announced the movement of 9 securities into various stages of the Graded Surveillance Measure (GSM) framework effective November 3, 2025. The securities are being placed in GSM Stage I (5 securities), Stage II (3 securities), and Stage IV (1 security) as part of enhanced market surveillance measures.

Key Points

  • 5 securities moving to GSM Stage I: Harig Crankshafts Ltd, Polo Hotels Ltd, JPT Securities Ltd, Starcom Information Technology Ltd, and Yaan Enterprises Ltd
  • 3 securities moving to GSM Stage II: Shree Manufacturing Company Ltd, Eurotex Industries and Exports Ltd, and Gravity India Ltd
  • 1 security moving to GSM Stage IV: Space Incubatrics Technologies Ltd
  • Securities in lower GSM stages may be subject to ESM Framework or IBC Framework
  • GSM framework applies progressive trading restrictions based on surveillance concerns

Regulatory Changes

The GSM framework imposes graduated surveillance measures on securities exhibiting unusual price movements or other concerns. Higher GSM stages typically involve additional restrictions such as Price Discovery Mechanism (PDM) sessions, increased margins, and trade-to-trade settlement.

Compliance Requirements

  • Investors and trading members must be aware of the GSM stage classification for affected securities
  • Trading in these securities will be subject to GSM-specific restrictions and margin requirements
  • Market participants should review BSE’s GSM framework guidelines for stage-specific trading conditions
  • Enhanced due diligence required before trading in GSM securities

Important Dates

  • Effective Date: November 3, 2025 - Securities moved to respective GSM stages

Impact Assessment

Market Impact: Movement into GSM stages typically results in reduced liquidity and increased trading costs due to higher margins and additional trading restrictions. Investors holding these securities may experience difficulty in executing trades.

Investor Impact: Retail investors should exercise caution when dealing with GSM securities as they indicate potential concerns regarding price volatility, low liquidity, or compliance issues. The progressive nature of GSM means securities can move to higher stages with more stringent restrictions if concerns persist.

Trading Impact: Securities in higher GSM stages face trade-to-trade settlement, ASM/GSM auctions, and periodic call auctions which significantly impact trading flexibility and execution.

Impact Justification

Movement into GSM stages indicates enhanced surveillance and trading restrictions for affected securities, impacting liquidity and investor access