Graded Surveillance Measure (GSM) - Securities Moving into GSM Stages

Description

BSE announces movement of 10 securities into various stages of the Graded Surveillance Measure (GSM) framework for enhanced monitoring.

Summary

BSE has issued a circular identifying 10 securities that are being moved into various stages of the Graded Surveillance Measure (GSM) framework. The GSM is a surveillance mechanism to enhance market integrity and safeguard investor interest by imposing restrictions on securities exhibiting abnormal price movements or other risk parameters. The securities are being moved to Stages I through IV based on their risk profile.

Key Points

• 3 securities moving to GSM Stage I: SC Agrotech Ltd, Panabyte Technologies Ltd, Decillion Finance Ltd
• 3 securities moving to GSM Stage II: Jainex Aamcol Ltd, Adhata Global Ltd, B.C. Power Controls Ltd
• 1 security moving to GSM Stage III: JPT Securities Ltd
• 3 securities moving to GSM Stage IV: Shree Manufacturing Company Ltd, ACE Edutrend Ltd, Rap Corp Ltd
• Securities may move to lower GSM stages if included in ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code) frameworks
• Total of 10 securities affected by this surveillance action

Regulatory Changes

The GSM framework applies progressive surveillance measures based on stage:

• Stage I: Entry level surveillance with price band restrictions
• Stage II: Increased restrictions on trading parameters
• Stage III: Further tightening of trading conditions
• Stage IV: Strictest surveillance level with maximum restrictions

Securities in higher GSM stages typically face:

• Reduced price bands
• Trade-for-trade settlement (no intraday trading)
• 100% upfront margin requirements
• Additional disclosure requirements

Compliance Requirements

• Investors trading in these securities must provide 100% upfront margins
• All trades will be settled on a trade-for-trade basis in applicable stages
• Market participants must be aware of the applicable price bands and trading restrictions
• Brokers should inform clients about the GSM status of these securities before accepting orders

Important Dates

• Circular Date: November 18, 2025
• Effective Date: As per BSE implementation schedule (typically next trading day)

Impact Assessment

Market Impact: The movement of securities into GSM stages will result in reduced liquidity and trading volumes for the affected stocks. Intraday traders and speculators will exit these securities due to trade-for-trade settlement requirements.

Investor Impact: Retail investors holding these securities may face difficulty in exiting positions due to reduced liquidity. The 100% margin requirement will limit leveraged trading.

Operational Impact: Brokers and trading members must update their systems to enforce GSM-specific trading restrictions and margin requirements. Increased monitoring and client communication will be necessary.

Affected Securities Details

Impact Justification

Affects trading conditions for 10 securities moving into stricter surveillance stages, impacting liquidity and investor participation