Description
BSE updates on 9 securities moving into various stages of the Graded Surveillance Measure framework, including movements to Stage I, II, and IV.
Summary
BSE has issued an update regarding securities being placed under the Graded Surveillance Measure (GSM) framework. A total of 9 securities are moving into their respective GSM stages, with 5 securities moving to Stage I, 3 securities moving to Stage II, and 1 security moving to Stage IV. The circular also notes that securities marked with special symbols may be moving to lower GSM stages due to inclusion in other surveillance frameworks (ESM or IBC).
Key Points
- 5 securities are moving to GSM Stage I: Harig Crankshafts Ltd, Polo Hotels Ltd, JPT Securities Ltd, Starcom Information Technology Ltd, and Yaan Enterprises Ltd
- 3 securities are moving to GSM Stage II: Shree Manufacturing Company Ltd, Eurotex Industries and Exports Ltd, and Gravity India Ltd
- 1 security is moving to GSM Stage IV: Space Incubatrics Technologies Ltd
- Securities marked (#) may move to lower GSM stages if included in ESM Framework
- Securities marked ($) may move to lower GSM stages if included in IBC Framework
- Movement based on surveillance criteria as per NSE (*)
Regulatory Changes
This circular implements the Graded Surveillance Measure framework, which places securities under heightened monitoring based on specific risk parameters. The GSM framework operates in progressive stages, with each stage imposing stricter trading conditions and surveillance measures. Securities can move between stages based on their compliance with market regulations and trading patterns.
Compliance Requirements
- Trading members must adhere to additional surveillance measures applicable to securities in GSM stages
- Enhanced due diligence required for transactions in GSM securities
- Additional margin requirements and price bands may apply depending on GSM stage
- Investors should be aware of restricted trading conditions for these securities
- Market participants must monitor for further updates on GSM status changes
Important Dates
- Circular Date: November 3, 2025
- Effective Date: To be implemented as per BSE surveillance schedule (specific implementation date to be confirmed through subsequent circulars)
Impact Assessment
Market Impact: High - The placement of securities in GSM stages significantly affects liquidity and trading volumes for the affected stocks. Higher GSM stages impose stricter trading restrictions, potentially leading to reduced investor participation.
Investor Impact: High - Investors holding or trading these securities will face increased margin requirements, reduced leverage, and potential price band restrictions. Stage IV placement (Space Incubatrics Technologies Ltd) indicates severe surveillance concerns.
Operational Impact: Medium - Brokers and trading members need to update their systems to reflect GSM status and enforce applicable trading restrictions and margin requirements.
Risk Considerations: The movement into GSM stages indicates heightened regulatory concern about these securities’ trading patterns, price volatility, or compliance issues. Investors should exercise increased caution and conduct thorough due diligence before trading in these securities.
Affected Securities Details
GSM Stage I
- Harig Crankshafts Ltd (500178, INE905C01034)
- Polo Hotels Ltd (526687, INE084C01012)
- JPT Securities Ltd (530985, INE630C01012)
- Starcom Information Technology Ltd (531616, INE347I01010)
- Yaan Enterprises Ltd (538521, INE969E01010)
GSM Stage II
- Shree Manufacturing Company Ltd (503863, INE632A01012)
- Eurotex Industries and Exports Ltd (521014, INE022C01012)
- Gravity India Ltd (532015, INE995A01013)
GSM Stage IV
- Space Incubatrics Technologies Ltd (541890, INE797Z01010)
Impact Justification
High severity as GSM placement imposes trading restrictions and higher surveillance on affected securities, directly impacting investor trading ability and stock liquidity.