Description
BSE announces movement of 8 securities into various stages of Graded Surveillance Measure (GSM) framework for enhanced monitoring.
Summary
BSE has announced the movement of 8 securities into various stages of the Graded Surveillance Measure (GSM) framework. Four securities are moving to GSM Stage I, one to Stage II, two to Stage III, and one to Stage IV. The GSM framework is designed to enhance market surveillance and protect investor interests by imposing additional monitoring and trading restrictions on securities that exhibit abnormal price movements or volatility.
Key Points
- 8 securities are being placed under enhanced surveillance through GSM framework
- 4 securities moving to GSM Stage I: Octaware Technologies, SGN Telecoms, Vani Commercials, and Mac Hotels
- 1 security moving to GSM Stage II: Harig Crankshafts
- 2 securities moving to GSM Stage III: Shree Manufacturing Company and Eurotex Industries and Exports
- 1 security moving to GSM Stage IV: Revati Media
- Securities may move to lower GSM stages if included in ESM Framework (#) or IBC Framework ($)
- Each GSM stage has progressively stricter trading conditions and surveillance parameters
Affected Securities
Moving to GSM Stage I
- Octaware Technologies Ltd (540416, INE208U01019)
- SGN Telecoms Ltd (531812, INE266C01023)
- Vani Commercials Ltd (538918, INE661Q01017)
- Mac Hotels Ltd (541973, INE004Z01011)
Moving to GSM Stage II
- Harig Crankshafts Ltd (500178, INE905C01034)
Moving to GSM Stage III
- Shree Manufacturing Company Ltd (503863, INE632A01012)
- Eurotex Industries and Exports Ltd (521014, INE022C01012)
Moving to GSM Stage IV
- Revati Media Ltd (524504, INE270D01015)
Regulatory Changes
The GSM framework imposes graduated levels of surveillance measures:
- Additional disclosure requirements
- Trade-for-trade settlement (no intraday trading)
- Price bands restrictions
- Additional margin requirements
- Reduced position limits
- Higher stages involve more stringent conditions
Compliance Requirements
- Brokers must ensure clients are aware of GSM status before executing trades
- All trades in GSM securities must comply with additional margin and settlement requirements
- Market participants must adhere to applicable price bands and position limits
- Investors should review the specific GSM stage requirements before trading
Important Dates
- Effective Date: November 4, 2025 (circular date)
- Trading under new GSM stages will be effective from the date specified by BSE
Impact Assessment
Market Impact: The placement of these securities under GSM will result in reduced liquidity as trade-for-trade settlement discourages speculative trading. Higher margin requirements and trading restrictions may lead to lower trading volumes.
Investor Impact: Retail and institutional investors holding these securities will face stricter trading conditions, potentially affecting their ability to exit positions quickly. The surveillance measures aim to protect investors from excessive volatility and abnormal price movements.
Operational Impact: Brokers and trading members must update their systems to enforce GSM-related restrictions and ensure proper client disclosures before accepting orders in these securities.
Impact Justification
Affects trading parameters for 8 securities with increased surveillance measures; impacts liquidity and trading conditions for affected stocks