Description

Three securities are moving to different stages of GSM framework: Lcc Infotech Ltd. to Stage I, Hemo Organic Limited to Stage II, and Pioneer Agro Extracts Ltd. to Stage III.

Summary

BSE has announced the movement of three securities into different stages of the Graded Surveillance Measure (GSM) framework. Lcc Infotech Ltd. (Security Code: 532019) is moving to GSM Stage I, Hemo Organic Limited (Security Code: 524590) is moving to GSM Stage II, and Pioneer Agro Extracts Ltd. (Security Code: 519439) is moving to GSM Stage III. The GSM framework is designed to enhance market integrity by placing additional surveillance measures on securities exhibiting abnormal price movements or other concerning patterns.

Key Points

  • Lcc Infotech Ltd. (ISIN: INE938A01021, Security Code: 532019) is moving to GSM Stage I
  • Hemo Organic Limited (ISIN: INE422G01015, Security Code: 524590) is moving to GSM Stage II
  • Pioneer Agro Extracts Ltd. (ISIN: INE062E01014, Security Code: 519439) is moving to GSM Stage III
  • Securities marked with (#) would move to a lower GSM stage due to inclusion in ESM Framework
  • Securities marked with ($) would move to a lower GSM stage due to inclusion in IBC Framework

Regulatory Changes

No changes to the GSM framework itself. This circular implements the existing GSM framework by moving specific securities to their respective surveillance stages based on their trading patterns and risk assessment.

Compliance Requirements

  • For Investors: Trading in these securities will be subject to GSM-specific restrictions including:
    • Stage I: 100% upfront margin requirement, price bands, and periodic call auctions
    • Stage II: More stringent restrictions including trade-for-trade settlement and reduced price bands
    • Stage III: Most stringent restrictions with additional trading limitations
  • For Trading Members: Must ensure compliance with enhanced margin requirements and trading restrictions applicable to each GSM stage
  • For Listed Companies: No direct compliance requirements, but companies should be aware of the surveillance status

Important Dates

  • Effective Date: The circular is dated November 19, 2025, with the GSM stage changes typically becoming effective from the next trading session or as specified by the exchange

Impact Assessment

Trading Impact: Securities moving to higher GSM stages will experience:

  • Reduced liquidity due to stricter trading restrictions
  • Higher transaction costs from 100% upfront margin requirements
  • Limited intraday trading opportunities (trade-for-trade settlement)
  • Potential reduction in retail investor participation

Investor Impact:

  • Existing investors may face difficulty in exiting positions due to reduced liquidity
  • New investors will face higher entry barriers due to margin requirements
  • Increased awareness of potential risks associated with these securities

Market Impact: The GSM framework serves as an investor protection mechanism, signaling heightened risk in these securities and encouraging cautious trading behavior.

Impact Justification

GSM stage movements indicate heightened surveillance on these securities, affecting trading volumes and investor participation through additional restrictions.