Description

BSE announces movement of 47 securities across GSM Stages II, III, and IV under the Graded Surveillance Measure framework effective November 11, 2025.

Summary

BSE has announced the movement of 47 securities into higher stages of the Graded Surveillance Measure (GSM) framework. The list includes 3 securities moving to GSM Stage II, 6 securities moving to GSM Stage III, and 38 securities moving to GSM Stage IV. Two securities (Blue Chip India Ltd and Univa Foods Limited) are marked as per NSE classification. The GSM framework imposes progressively stricter surveillance measures on securities based on various parameters including price volatility, market capitalization, and corporate governance concerns.

Key Points

  • 3 securities moving to GSM Stage II: Ecoboard Industries, Jpt Securities, and Aayush Wellness Limited
  • 6 securities moving to GSM Stage III: India Radiators, Procal Electronics India, Popees Cares Limited, Bharat Textiles & Proofing Ind, Progrex Ventures Limited, and Tacent Projects Limited
  • 38 securities moving to GSM Stage IV (highest surveillance stage): Including Harig Crankshafts, Rama Petrochemicals, Gayatri Projects, and 35 others
  • 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
  • Blue Chip India Ltd and Univa Foods Limited marked as per NSE classification

Regulatory Changes

The GSM framework operates on a staged approach with increasing surveillance intensity:

  • Stage II: Enhanced monitoring with additional reporting requirements
  • Stage III: Price bands may be reduced, additional disclosures required
  • Stage IV: Most stringent measures including Trade-to-Trade (T2T) settlement, reduced price bands, ASM (Additional Surveillance Measure) applicability, and potential movement to delisting track

Securities in higher GSM stages face restrictions on intraday trading, reduced leverage, and increased margin requirements.

Compliance Requirements

  • Listed Companies: Must comply with enhanced disclosure norms and corporate governance standards applicable to their GSM stage
  • Trading Members: Need to inform clients about GSM classification and associated trading restrictions
  • Investors: Should be aware that securities in GSM Stage IV operate under T2T settlement with no intraday trading, delivery compulsory, and face price bands typically restricted to 5% or lower
  • Companies in Stage IV: Required to take corrective actions to address concerns leading to GSM classification or risk further regulatory action including delisting

Important Dates

  • Effective Date: November 11, 2025 (date of circular issuance)
  • The GSM stage movements are effective from the date of circular publication
  • Companies have ongoing obligations to address GSM concerns; timeline for remediation varies by specific issues

Impact Assessment

Market Impact: High - 47 securities facing enhanced surveillance will experience:

  • Reduced liquidity due to T2T settlement requirements (especially Stage IV)
  • Limited price movement due to narrower price bands
  • Decreased investor interest due to increased risk perception
  • Potential exit by institutional investors due to compliance concerns

Investor Impact: High risk for existing shareholders as:

  • Stage IV securities face significant trading restrictions
  • Reduced ability to exit positions due to liquidity constraints
  • Increased volatility risk within narrow price bands
  • Potential capital loss if securities move to delisting track

Operational Impact: Companies in GSM Stage IV must prioritize:

  • Addressing corporate governance deficiencies
  • Improving financial disclosures and transparency
  • Meeting minimum public shareholding and trading requirements
  • Restoring investor confidence to avoid delisting proceedings

Impact Justification

Affects 47 securities moving to higher GSM stages with stricter surveillance and trading restrictions. High severity as Stage IV securities face most stringent measures including potential delisting track.