Description

BSE circular announcing 14 securities moving into various stages of the Graded Surveillance Measure (GSM) framework for enhanced monitoring.

Summary

BSE has announced the movement of 14 securities into various stages of the Graded Surveillance Measure (GSM) framework. 11 securities are moving to GSM Stage I, 2 securities to Stage II, and 1 security to Stage III. The GSM framework is designed to enhance market surveillance and alert investors about securities that have witnessed unusual price movements or other concerns.

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
  • Some securities may move to lower GSM stages if included in ESM Framework or IBC Framework
  • The list is aligned with NSE’s GSM framework

Regulatory Changes

The GSM framework applies progressive surveillance measures across multiple stages. Each stage typically involves:

  • Stage I: Initial surveillance with additional disclosure requirements
  • Stage II: Enhanced surveillance with stricter trading conditions
  • Stage III: Most stringent surveillance with significant trading restrictions

Securities can move to lower GSM stages if they are included in the Enhanced Surveillance Measure (ESM) Framework or Insolvency and Bankruptcy Code (IBC) Framework.

Compliance Requirements

  • Trading members must be aware of the GSM classification of these securities
  • Investors should exercise additional caution when trading securities under GSM
  • Securities under GSM may have additional margin requirements and trading restrictions
  • Market participants must comply with all applicable surveillance measures for each stage

Important Dates

  • Circular Date: November 10, 2025
  • Effective Date: As specified by BSE (typically from the date of circular or next trading day)

Impact Assessment

Market Impact: Medium - The inclusion of 14 securities in GSM stages will likely impact their liquidity and trading volumes. Higher GSM stages typically see reduced retail participation due to increased awareness of risks.

Investor Impact: Investors holding these securities should be aware of the enhanced surveillance status, which indicates potential concerns regarding price movements, volatility, or corporate governance issues. Trading in these securities may become more restricted with higher margin requirements.

Operational Impact: Trading members and market participants need to update their systems and risk management frameworks to account for the GSM classification of these securities. Additional due diligence is required before executing trades in these stocks.

Impact Justification

Affects 14 securities with enhanced surveillance measures that impact trading conditions, liquidity, and investor participation. Important for investors holding or trading these stocks.