Description

BSE announces movement of 10 securities into various GSM stages (I to IV) under the Graded Surveillance Measure framework effective from the specified date.

Summary

BSE has issued a circular announcing the movement of 10 securities into various stages of the Graded Surveillance Measure (GSM) framework. The securities are being moved to GSM Stages I through IV based on surveillance criteria. This action involves enhanced monitoring and trading restrictions on the affected securities.

Key Points

  • Total 10 securities are being moved to different GSM stages
  • 3 securities moving to GSM Stage I: Williamson Financial Services Ltd, Jauss Polymers Ltd, Gopal Iron & Steels Company Gujarat Ltd
  • 1 security moving to GSM Stage II: Senthil Infotek Ltd
  • 1 security moving to GSM Stage III: ECS Biztech Ltd
  • 5 securities moving to GSM Stage IV: India Radiators Ltd, Mehta Securities Ltd, Ashoka Refineries Ltd, JPT Securities Ltd, Bharat Textiles & Proofing Industries Ltd
  • Securities marked with special symbols (#) move lower in GSM due to ESM Framework inclusion
  • Securities marked with ($) move lower in GSM due to IBC Framework inclusion

Regulatory Changes

The affected securities will be subject to GSM framework provisions, which include:

  • Enhanced surveillance monitoring
  • Additional disclosure requirements
  • Potential trading restrictions based on GSM stage
  • Price bands and other trading controls as applicable to respective GSM stages
  • Higher stages (III and IV) typically involve more stringent surveillance measures

Compliance Requirements

  • Trading members must comply with GSM stage-specific trading restrictions
  • Investors should be aware of the surveillance status before trading in these securities
  • Companies must comply with enhanced disclosure and reporting requirements under GSM
  • Brokers must inform clients about GSM status and associated risks
  • All market participants must adhere to stage-specific price bands and quantity limits

Important Dates

  • Circular Date: November 25, 2025
  • Effective Date: As per BSE notification (typically immediate or next trading day)

Impact Assessment

Market Impact:

  • High impact on the 10 affected securities due to enhanced surveillance and potential trading restrictions
  • Reduced liquidity expected in these securities as GSM stages impose trading constraints
  • Investor sentiment may be negatively affected due to regulatory scrutiny
  • Stage IV securities face strictest surveillance, potentially deterring retail participation

Operational Impact:

  • Trading members must update their systems to reflect GSM stage restrictions
  • Risk management systems need to be adjusted for these securities
  • Increased monitoring required by brokers and clearing members

Investor Impact:

  • Existing investors in these securities may face difficulty in exiting positions due to reduced liquidity
  • New investors must acknowledge additional risks before trading
  • Price discovery may be impacted due to trading restrictions
  • Higher stages may require additional margin or position limits

Impact Justification

High severity as GSM placement involves enhanced surveillance and trading restrictions on 10 securities, directly impacting trading activities and investor participation in these stocks.