Description

BSE announces movement of five securities across different GSM stages, including MSR India Ltd moving out of GSM, and securities moving to Stage I, III, and IV surveillance measures.

Summary

BSE has issued a circular detailing the movement of securities under the Graded Surveillance Measure (GSM) framework. Five securities are transitioning across different GSM stages: MSR India Ltd is moving out of GSM (Stage 0), Scintilla Commercial & Credit Limited is entering Stage I, Madhur Industries Ltd and Rap Corp Limited are moving to Stage III, and Foundry Fuel Products Ltd is moving to Stage IV. The circular also notes that securities may move to lower GSM stages if included in ESM or IBC frameworks.

Key Points

  • MSR India Ltd (Security Code: 508922, ISIN: INE331L01026) - Moving to Stage 0 (exiting GSM)
  • Scintilla Commercial & Credit Limited (Security Code: 538857, ISIN: INE892C01018) - Moving to GSM Stage I
  • Madhur Industries Ltd (Security Code: 519279, ISIN: INE110C01015) - Moving to GSM Stage III
  • Rap Corp Limited (Security Code: 531583, ISIN: INE483D01014) - Moving to GSM Stage III
  • Foundry Fuel Products Ltd (Security Code: 513579, ISIN: INE617C01027) - Moving to GSM Stage IV
  • Securities marked with (#) move to lower GSM stages due to ESM Framework inclusion
  • Securities marked with ($) move to lower GSM stages due to IBC Framework inclusion

Regulatory Changes

The GSM framework applies progressive surveillance measures to securities based on specific criteria. Higher GSM stages (Stage IV being the highest in this circular) typically involve stricter trading restrictions, including:

  • Additional disclosure requirements for trades
  • Price bands and circuit filters
  • Trade-for-trade settlement
  • 100% upfront margin requirements
  • Restrictions on derivative contracts

Securities can move between stages or exit GSM based on compliance with regulatory requirements or inclusion in other frameworks like ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code).

Compliance Requirements

  • Investors and trading members must be aware of the GSM stage applicable to these securities
  • Trading in higher GSM stages requires adherence to stricter margin and settlement requirements
  • Trade-for-trade settlement may be mandatory for securities in higher GSM stages
  • Additional disclosures may be required for transactions in these securities
  • Market participants should monitor announcements for any further changes in GSM classification

Important Dates

  • Circular Date: November 13, 2025
  • Effective Date: The changes are applicable as per BSE’s GSM framework implementation schedule (specific implementation date to be confirmed by BSE)

Impact Assessment

Market Impact: The movement of securities across GSM stages affects liquidity and trading behavior. Securities moving to higher GSM stages (Stage III and IV) will face reduced liquidity due to stricter trading conditions, potentially affecting price discovery. MSR India Ltd exiting GSM (Stage 0) indicates improved compliance or stability.

Investor Impact: Investors holding these securities should be aware of increased trading restrictions for those moving to higher GSM stages. Higher margin requirements and trade-for-trade settlement can impact trading strategies and holding costs.

Operational Impact: Brokers and trading members must update their systems to reflect the new GSM classifications and ensure compliance with the applicable trading restrictions and margin requirements for each stage.

Impact Justification

Affects trading conditions for five securities under GSM framework with varying levels of surveillance restrictions. Impacts investors holding or trading these specific stocks.