Description

BSE announces movement of 5 securities into their respective GSM stages, including SSPN Finance moving to Stage 0 and four others moving to Stage I.

Summary

BSE has announced changes to the Graded Surveillance Measure (GSM) classification for 5 securities effective from the specified date. One security (SSPN Finance Ltd) is moving to GSM Stage 0 due to its inclusion in the Enhanced Surveillance Measure (ESM) Framework, while four other securities are moving into GSM Stage I, which includes additional trading restrictions and surveillance measures.

Key Points

  • 5 securities are moving into their respective GSM stages
  • SSPN Finance Ltd (539026) moving to GSM Stage 0 due to ESM Framework inclusion
  • Senthil Infotek Ltd (531980) moving to GSM Stage I
  • Auto Pins (India) Ltd (531994) moving to GSM Stage I
  • Polymac Thermoformers Ltd (537573) moving to GSM Stage I
  • Soni Medicare Limited (539378) moving to GSM Stage I
  • Securities marked with # are moving to lower GSM stages due to ESM Framework inclusion
  • Securities marked with $ would move to lower GSM stages due to IBC Framework inclusion

Regulatory Changes

The GSM framework applies enhanced surveillance on securities based on specific criteria including price variations, volatility, and market operations. Securities in GSM Stage I face additional trading restrictions such as:

  • 100% upfront margin requirements from clients
  • Periodic call auctions instead of continuous trading
  • Additional disclosures and risk warnings
  • Enhanced reporting requirements

Securities moving to Stage 0 are excluded from GSM due to inclusion in other surveillance frameworks like ESM or IBC.

Compliance Requirements

  • Trading members must collect 100% upfront margins for Stage I securities
  • Brokers must provide additional risk disclosures to clients trading these securities
  • Investors should be aware of enhanced surveillance measures and associated trading restrictions
  • Market participants must comply with periodic call auction mechanisms for affected securities

Important Dates

  • Effective Date: As per BSE circular dated November 24, 2025
  • Implementation: Immediate from publication date

Impact Assessment

Market Impact: Medium - The movement of securities into GSM stages will result in reduced liquidity and higher margin requirements for these stocks. Trading will shift to periodic call auctions for Stage I securities, potentially impacting price discovery and execution.

Investor Impact: Retail and institutional investors holding or trading these securities will face:

  • Higher capital requirements (100% upfront margin)
  • Limited trading windows (call auctions only)
  • Increased volatility during auction sessions
  • Enhanced risk warnings and disclosures

Operational Impact: Brokers and trading members must adjust their systems to implement margin collection and trading restrictions for these securities. Risk management systems need to be updated to reflect the new surveillance classifications.

Impact Justification

Affects 5 securities with enhanced surveillance measures. SSPN Finance moving to lower GSM stage due to ESM inclusion. Impacts trading conditions and investor requirements for these stocks.