GSM Framework - 14 Securities Moving to Various Surveillance Stages

Description

BSE announces movement of 14 securities into different stages of Graded Surveillance Measure (GSM) framework, with 11 securities moving to Stage I, 2 to Stage II, and 1 to Stage III.

Summary

BSE has announced the movement of 14 securities into various stages of the Graded Surveillance Measure (GSM) framework. The GSM is a surveillance mechanism designed to alert investors about securities exhibiting abnormal price movements or other concerning characteristics. Eleven securities are moving to GSM Stage I, two securities to Stage II, and one security to Stage III.

Key Points

• 11 securities moving to GSM Stage I: Jainex Aamcol Ltd., Munoth Capital Market Ltd., Mfs Intercorp Ltd., Rap Corp Limited, Noida Toll Bridge Company Ltd., Shashank Traders Limited, Flora Corporation Limited, Valencia Nutrition Limited, Adishakti Loha And Ispat Limited, Hindustan Fluorocarbons Ltd., and White Organic Retail Limited
• 2 securities moving to GSM Stage II: Popees Cares Limited and Mac Hotels Limited
• 1 security moving to GSM Stage III: Easun Capital Markets Limited
• Securities marked with (#) are moving to lower GSM stages due to inclusion in ESM Framework
• Securities marked with ($) are moving to lower GSM stages due to inclusion in IBC Framework

Regulatory Changes

The GSM framework operates in progressive stages with increasing restrictions:

• Stage I typically involves additional disclosure requirements and price bands
• Stage II involves tighter surveillance with reduced price bands and trading in Trade-for-Trade segment
• Stage III involves the most stringent surveillance measures with further restrictions on trading

Movement between stages depends on various factors including price volatility, trading volumes, corporate governance issues, and compliance status.

Compliance Requirements

• All trades in securities under GSM are subject to additional surveillance and monitoring
• Investors should be aware of the enhanced risk associated with securities in GSM stages
• Trading members must ensure compliance with additional margin requirements and reporting obligations for GSM securities
• Securities in higher GSM stages may have restricted trading mechanisms (Trade-for-Trade basis)

Important Dates

• Circular Date: November 10, 2025
• Effective Date: As per BSE guidelines (typically immediate or next trading day)

Impact Assessment

Market Impact: Medium - The placement of these 14 securities under various GSM stages will result in enhanced surveillance and potentially reduced liquidity. Investors holding these securities should exercise caution as GSM placement often indicates concerns about price volatility, corporate governance, or compliance issues.

Trading Impact: Securities in GSM stages typically experience reduced trading volumes due to additional restrictions and the cautionary signal sent to market participants. The Trade-for-Trade mechanism in higher stages eliminates intraday trading opportunities.

Investor Impact: Existing investors in these securities should review their holdings carefully. GSM placement serves as a warning signal about potential risks. New investors should conduct thorough due diligence before investing in GSM securities.

Securities List

Impact Justification

Affects 14 securities being placed under enhanced surveillance with trading restrictions. Significant for investors holding these stocks as GSM stages impose additional compliance and can impact liquidity.