Description

BSE announces movement of 6 securities into their respective GSM stages (I, II, and III) effective from the specified date.

Summary

BSE has issued a circular listing 6 securities that are moving into their respective Graded Surveillance Measure (GSM) stages. The GSM framework is a surveillance mechanism to alert investors about securities exhibiting abnormal price movements or unusual trading patterns. One security is moving to GSM Stage I, two to Stage II, and three to Stage III, with higher stages indicating more stringent surveillance measures.

Key Points

  • 6 securities are being moved into various GSM stages
  • 1 security moving to GSM Stage I: Libord Securities Ltd. (531027)
  • 2 securities moving to GSM Stage II: Wardwizard Healthcare Limited (512063) and Sc Agrotech Limited (526081)
  • 3 securities moving to GSM Stage III: Pasupati Fincap Ltd. (511734), Shah Foods Ltd. (519031), and Span Divergent Limited (524727)
  • Securities marked with special symbols may move to lower GSM stages due to inclusion in ESM or IBC frameworks
  • GSM stages impose progressively stricter trading conditions and disclosure requirements

Regulatory Changes

The GSM framework applies enhanced surveillance measures to securities based on market behavior. Higher GSM stages typically involve:

  • Trade-to-trade settlement (no intraday trading)
  • 100% margin requirements
  • Price bands may be reduced
  • Additional disclosure requirements for investors
  • Enhanced monitoring of trading activity

Compliance Requirements

  • Investors: Must be aware of enhanced margin requirements and settlement procedures for these securities
  • Trading Members: Need to update systems and inform clients about the changed surveillance status
  • Companies: Required to provide enhanced disclosures and address concerns that led to GSM classification
  • All trades in these securities will be subject to stricter surveillance parameters effective from the implementation date

Important Dates

  • Circular Date: November 20, 2025
  • Effective Date: As specified by BSE (typically next trading day unless otherwise mentioned)

Impact Assessment

Market Impact: Movement into GSM stages will likely result in reduced liquidity for affected securities due to stricter trading conditions. Higher margin requirements and trade-to-trade settlement can deter speculative trading and reduce trading volumes.

Investor Impact: Existing investors may face difficulty in exiting positions due to reduced liquidity. New investors will need to meet higher margin requirements and accept additional trading restrictions.

Operational Impact: Trading members must update their risk management systems and client communication processes to reflect the new surveillance status of these securities. The move serves as a warning signal for investors to exercise enhanced due diligence.

Impact Justification

Movement into GSM stages affects trading terms and investor requirements for 6 securities, impacting liquidity and trading conditions for these stocks