Description

BSE announces movement of 5 securities across various GSM stages, including MSR India Ltd exiting GSM, and securities moving to stages I, III, and IV.

Summary

BSE has announced changes in Graded Surveillance Measure (GSM) classification for 5 securities effective immediately. One security is exiting the GSM framework (Stage 0), while others are being moved to higher surveillance stages (I, III, and IV) based on their risk profiles and market behavior.

Key Points

  • MSR India Ltd (Security Code: 508922, ISIN: INE331L01026) moved to GSM Stage 0 (exiting GSM)
  • Scintilla Commercial & Credit Limited (Security Code: 538857, ISIN: INE892C01018) moved to GSM Stage I
  • Madhur Industries Ltd (Security Code: 519279, ISIN: INE110C01015) moved to GSM Stage III
  • Rap Corp Limited (Security Code: 531583, ISIN: INE483D01014) moved to GSM Stage III
  • Foundry Fuel Products Ltd (Security Code: 513579, ISIN: INE617C01027) moved to GSM Stage IV
  • Securities may move to lower GSM stages if included in ESM Framework or IBC Framework

Regulatory Changes

The GSM framework is a risk-based surveillance mechanism where securities are placed in different stages based on various risk parameters. Movement to higher stages indicates increased surveillance and may result in additional trading restrictions such as price bands, trade-to-trade settlement, and reduced position limits.

Compliance Requirements

  • Trading members and investors must note the revised GSM classification for these securities
  • Higher GSM stages typically involve stricter trading conditions including reduced circuit filters and additional margin requirements
  • Market participants should review their positions in affected securities
  • Compliance with enhanced disclosure and reporting requirements for securities in higher GSM stages

Important Dates

  • Effective Date: November 13, 2025 (circular date)
  • Changes applicable immediately from the date of circular

Impact Assessment

The movement of securities across GSM stages affects liquidity and trading conditions. Securities moving to higher stages (III and IV) will face increased trading restrictions, potentially reducing liquidity and increasing volatility. MSR India Ltd’s exit from GSM (Stage 0) indicates improved compliance and risk parameters, allowing normal trading conditions. Investors holding these securities should be aware of the enhanced surveillance measures and potential impact on price discovery and settlement cycles.

Impact Justification

Affects trading conditions for 5 securities under GSM framework with varying levels of surveillance, important for investors holding these stocks