Graded Surveillance Measure (GSM) - Securities Moving to GSM Stages

Description

Five securities are being moved into various GSM stages, with one security moving to Stage I and four securities moving to Stage III under the Graded Surveillance Measure framework.

Summary

BSE has announced the movement of five securities into their respective Graded Surveillance Measure (GSM) stages. One security, Avi Products India Ltd, is moving to GSM Stage I, while four securities - Integra Switchgear Ltd, VK Global Industries Ltd, Gopal Iron & Steels Company Gujarat Ltd, and Soni Medicare Ltd - are moving to GSM Stage III. The GSM framework is designed to alert investors about securities with unusual price movements or other risk parameters.

Key Points

• One security moving to GSM Stage I: Avi Products India Ltd (Security Code: 523896, ISIN: INE316O01021)
• Four securities moving to GSM Stage III: Integra Switchgear Ltd, VK Global Industries Ltd, Gopal Iron & Steels Company Gujarat Ltd, and Soni Medicare Ltd
• Securities can move to lower GSM stages if included in ESM (Enhanced Surveillance Measure) Framework
• Securities can move to lower GSM stages if included in IBC (Insolvency and Bankruptcy Code) Framework
• GSM classifications are aligned with NSE surveillance measures

Regulatory Changes

No new regulatory changes introduced. This circular implements the existing GSM framework for surveillance of securities exhibiting abnormal price movements or trading patterns.

Compliance Requirements

• All trades in GSM Stage I securities will have higher surveillance monitoring
• All trades in GSM Stage III securities will be subject to stricter surveillance measures including:
  • 100% delivery requirement (no intraday trading)
  • Additional margin requirements
  • Price bands may be reduced
  • Trading frequency restrictions may apply
• Investors and brokers must ensure compliance with GSM stage-specific trading restrictions

Important Dates

• Effective Date: November 27, 2025 (as per circular date)
• The GSM stage movement applies from the date of circular issuance

Impact Assessment

Market Impact:

• Limited overall market impact as only five securities are affected
• Increased trading restrictions on these specific securities may reduce liquidity
• Price volatility may be constrained due to surveillance measures

Investor Impact:

• Investors holding these securities should be aware of enhanced surveillance and trading restrictions
• GSM Stage III securities will have 100% delivery requirement, eliminating intraday trading opportunities
• Higher margin requirements may impact leveraged positions
• Exit strategies may be affected due to reduced liquidity

Operational Impact:

• Brokers must update their systems to reflect GSM stage changes
• Risk management systems need to account for additional margin requirements
• Compliance teams must monitor trades in these securities for adherence to GSM norms

Securities Details

Impact Justification

Movement to GSM stages indicates enhanced surveillance and trading restrictions on affected securities, impacting investors holding or trading these stocks with potential liquidity constraints and mandatory delivery requirements.