Graded Surveillance Measure (GSM) - Securities Moving to Different GSM Stages

Description

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

Summary

BSE has announced the movement of 10 securities into different stages of the Graded Surveillance Measure (GSM) framework. The GSM is a progressive surveillance mechanism designed to alert investors about securities exhibiting abnormal price movements or other concerns. Three securities are moving to Stage I, three to Stage II, one to Stage III, and three to Stage IV.

Key Points

• 10 securities are being placed under enhanced surveillance across GSM Stages I through IV
• Stage I: SC Agrotech Ltd, Panabyte Technologies Ltd, Decillion Finance Ltd
• Stage II: Jainex Aamcol Ltd, Adhata Global Ltd, B.C. Power Controls Ltd
• Stage III: JPT Securities Ltd
• Stage IV: Shree Manufacturing Company Ltd, ACE Edutrend Ltd, Rap Corp Ltd
• 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

No new regulatory changes introduced. This circular implements the existing Graded Surveillance Measure framework by moving securities to appropriate surveillance stages based on their trading patterns and compliance status.

Compliance Requirements

• Trading members must inform their clients about the surveillance status of these securities
• Investors should be aware that securities under GSM may have additional trading restrictions
• Higher GSM stages typically involve stricter conditions including higher margins, trade-for-trade settlement, and price bands
• Market participants should exercise caution while trading in these securities

Important Dates

• Effective Date: November 18, 2025 (as per circular date)

Impact Assessment

Market Impact: Trading in these 10 securities will be subject to enhanced surveillance measures. Higher GSM stages may result in reduced liquidity, higher margins, and trade-for-trade settlement requirements. Investors may face increased difficulty in entering or exiting positions.

Investor Impact: Retail investors holding or planning to trade these securities should be aware of the elevated risk profile. The GSM classification serves as a warning signal about potential concerns with these stocks.

Operational Impact: Brokers and trading members need to ensure their systems recognize the GSM classification and apply appropriate margin and settlement requirements. Client education about the risks associated with GSM securities is essential.

Securities Details

Impact Justification

Affects trading conditions for 10 securities under enhanced surveillance framework. Investors and traders in these stocks need to be aware of increased monitoring and potential trading restrictions.