Description

Four securities are being moved to higher GSM stages, including Ecs Biztech Limited (Stage II), Gravity (India) Ltd. (Stage III), and Pasupati Fincap Ltd. and Shah Foods Ltd. (Stage IV).

Summary

BSE has announced the movement of four securities into their respective Graded Surveillance Measure (GSM) stages. Ecs Biztech Limited moves to GSM Stage II, Gravity (India) Ltd. moves to Stage III, while Pasupati Fincap Ltd. and Shah Foods Ltd. move to the highest Stage IV. This surveillance framework is designed to alert investors about securities that have witnessed abnormal price movements or other concerning market behavior.

Key Points

  • Ecs Biztech Limited (Security Code: 540063, ISIN: INE925Q01024) moved to GSM Stage II
  • Gravity (India) Ltd. (Security Code: 532015, ISIN: INE995A01013) moved to GSM Stage III
  • Pasupati Fincap Ltd. (Security Code: 511734, ISIN: INE527C01010) moved to GSM Stage IV
  • Shah Foods Ltd. (Security Code: 519031, ISIN: INE455D01012) moved to GSM Stage IV
  • Securities marked (#) may move to lower GSM stages if included in ESM Framework
  • Securities marked ($) may move to lower GSM stages if included in IBC Framework

Regulatory Changes

The GSM framework applies progressive surveillance measures based on stage:

  • Stage II: Enhanced monitoring and disclosure requirements
  • Stage III: Additional trading restrictions and price bands
  • Stage IV: Highest level of surveillance with strictest trading conditions including 100% margin requirements and trade-for-trade settlement

Compliance Requirements

  • Investors must be aware of enhanced surveillance measures for these securities
  • Brokers must ensure 100% upfront margin for Stage IV securities
  • All trades in Stage IV securities will be on a trade-for-trade basis with no intraday leveraging
  • Investors should exercise increased caution when trading these securities
  • Delivery-based trading only for Stage IV securities

Important Dates

  • Circular Date: November 21, 2025
  • Effective Date: As per BSE notification (typically next trading day)

Impact Assessment

Market Impact:

  • Significant reduction in liquidity for affected securities, particularly those in Stage IV
  • Higher transaction costs due to 100% margin requirements
  • Limited participation from retail and leveraged traders

Trading Impact:

  • No intraday trading permitted for Stage IV securities
  • Increased price volatility due to reduced liquidity
  • Potential exit difficulties for existing investors

Investor Impact:

  • Higher capital requirements for trading these securities
  • Increased risk perception and cautionary signals
  • Limited ability to trade large quantities due to surveillance measures

Impact Justification

Movement to higher GSM stages indicates increased surveillance and trading restrictions, directly impacting liquidity and investor access to these securities.