Description

BSE announces movement of 7 securities into various stages of Graded Surveillance Measure (GSM) framework, with companies moving to GSM Stage I, II, and III.

Summary

BSE has announced the movement of 7 securities into their respective Graded Surveillance Measure (GSM) stages effective from the specified date. Four securities are moving to GSM Stage I, one to Stage II, and two to Stage III. The GSM framework is designed to alert investors about securities that have witnessed abnormal price movements or trading activity.

Key Points

  • 4 securities moving to GSM Stage I: Hemo Organic Limited, Suncity Synthetics Ltd., Indergiri Finance Ltd., and B.C. Power Controls Ltd
  • 1 security moving to GSM Stage II: Span Divergent Limited
  • 2 securities moving to GSM Stage III: Mehta Securities Ltd. and Adjia Technologies Limited
  • Securities under GSM framework face additional surveillance and trading restrictions
  • Some securities may move to lower GSM stages if included in ESM or IBC frameworks

Regulatory Changes

The circular implements surveillance stage changes under the existing GSM framework. Securities placed under GSM are subject to:

  • Enhanced disclosure requirements
  • Possible trading restrictions including price bands
  • Additional margin requirements
  • Periodic review of surveillance measures

Compliance Requirements

  • Listed companies must comply with enhanced disclosure obligations under their respective GSM stages
  • Trading members must ensure clients are aware of GSM status before executing trades
  • Higher margin requirements apply for transactions in GSM securities
  • Investors should exercise additional caution when trading these securities

Important Dates

  • Effective Date: November 17, 2025
  • The changes are applicable from the date of circular issuance

Impact Assessment

Market Impact: Medium - The movement of these 7 securities into various GSM stages will result in reduced liquidity and potentially wider bid-ask spreads. Trading volumes may decline due to enhanced margin requirements and investor caution.

Investor Impact: Investors holding these securities will face stricter trading conditions, higher margins, and potential difficulty in exiting positions. The GSM classification serves as a warning signal about abnormal price/volume behavior.

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

Impact Justification

Affects trading conditions for 7 securities under enhanced surveillance, impacting liquidity and trading parameters for these stocks