Graded Surveillance Measure (GSM) - Securities Moving to Stages I, II, and III

Description

BSE announces movement of 9 securities into various GSM stages for enhanced surveillance monitoring effective November 26, 2025.

Summary

BSE has announced the movement of 9 securities into different stages of the Graded Surveillance Measure (GSM) framework. The GSM is a surveillance mechanism to enhance market integrity by monitoring securities that exhibit abnormal price movements or other concerning characteristics. Three securities are moving to Stage I, three to Stage II, and three to Stage III, with each stage representing progressively stricter surveillance and trading restrictions.

Key Points

• 9 securities are being moved into GSM stages effective November 26, 2025
• Stage I: Kapil Cotex Ltd, Phaarmasia Ltd, Shivansh Finserve Ltd
• Stage II: Sungold Capital Ltd, Gopal Iron & Steels Company Gujarat Ltd, Soni Medicare Ltd
• Stage III: Cresanto Global Ltd, Nagarjuna Agri Tech Ltd, Senthil Infotek Ltd
• Securities can move to lower GSM stages if included in ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code) frameworks
• Higher GSM stages typically involve increased margin requirements and trading restrictions

Regulatory Changes

No new regulatory framework introduced. This represents routine implementation of the existing Graded Surveillance Measure framework to specific securities based on their market behavior and characteristics.

Compliance Requirements

• Trading members must apply applicable margin requirements for securities in respective GSM stages
• Investors should be aware of additional margin obligations when trading these securities
• Brokers must ensure proper surveillance and risk management for clients trading GSM securities
• Higher stages may require additional disclosures to clients about surveillance status

Important Dates

• Effective Date: November 26, 2025 - Securities move into their respective GSM stages

Impact Assessment

Trading Impact: Securities in higher GSM stages face increased margin requirements (typically 100% margin in advanced stages), which may reduce trading volumes and liquidity. Stage III securities face the most stringent restrictions.

Investor Impact: Retail investors may find it more difficult to trade these securities due to higher capital requirements. Increased margins aim to reduce speculative activity and protect investors from excessive volatility.

Market Impact: Limited broader market impact as these are individual securities with specific surveillance concerns. The measure is protective in nature, targeting securities with abnormal characteristics rather than indicating systemic issues.

Securities Details:

Impact Justification

Affects 9 securities with enhanced surveillance measures that may impact trading activity and investor access, but represents routine regulatory monitoring rather than immediate market-wide impact