Description

BSE announces movement of 6 securities into various GSM stages, including Libord Securities Ltd., Wardwizard Healthcare Limited, Sc Agrotech Limited, Pasupati Fincap Ltd., Shah Foods Ltd., and Span Divergent Limited.

Summary

BSE has announced the movement of 6 securities into their respective Graded Surveillance Measure (GSM) stages effective from the date of this circular. The GSM framework is designed to enhance market integrity and protect investors by placing securities under increased surveillance based on specific criteria. One security is moving to GSM Stage I, two securities to Stage II, and three securities to Stage III.

Key Points

  • 6 securities are being moved to various GSM stages
  • Libord Securities Ltd. (531027) is moving to GSM Stage I
  • Wardwizard Healthcare Limited (512063) and Sc Agrotech Limited (526081) are moving to GSM Stage II
  • Pasupati Fincap Ltd. (511734), Shah Foods Ltd. (519031), and Span Divergent Limited (524727) are moving to GSM Stage III
  • Securities in GSM stages 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 the Graded Surveillance Measure (GSM) framework, which places securities under heightened surveillance based on market behavior and compliance criteria. Securities moving to higher GSM stages face progressively stricter trading conditions:

  • Stage I: Initial surveillance with additional disclosure requirements
  • Stage II: Enhanced surveillance with trading restrictions
  • Stage III: Highest level of surveillance with maximum trading restrictions

Securities marked with special symbols may move to lower GSM stages if included in the Enhanced Surveillance Measure (ESM) Framework (#) or Insolvency and Bankruptcy Code (IBC) Framework ($).

Compliance Requirements

  • Trading members must inform clients about the GSM status of these securities
  • Investors should be aware of additional price bands, position limits, and margin requirements applicable to GSM securities
  • Market participants must comply with enhanced disclosure norms for transactions in these securities
  • Brokers should exercise enhanced due diligence when executing orders in GSM securities

Important Dates

  • Effective Date: November 20, 2025 (date of circular issuance)

Impact Assessment

Market Impact: The movement of these 6 securities to GSM stages will result in reduced liquidity and increased trading costs due to higher margin requirements and position limits. Investors holding these securities may face difficulty in exiting positions.

Investor Impact: Retail and institutional investors holding these securities should be prepared for:

  • Additional surveillance scrutiny on their trading activities
  • Higher margin requirements for trading these securities
  • Reduced order sizes and stricter price bands
  • Potential difficulty in finding counterparties for large transactions

Operational Impact: Trading members and market participants will need to update their systems to reflect the new GSM classifications and ensure compliance with the additional restrictions and requirements applicable to each stage.

The GSM framework serves as a risk mitigation tool, signaling to market participants that these securities require extra caution due to concerns about price volatility, low liquidity, or other market integrity issues.

Impact Justification

Movement to GSM stages affects trading conditions for 6 securities, imposing additional surveillance and restrictions to protect investor interests.