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

Description

BSE circular detailing securities transitioning between GSM stages, including movements to Stages I and II, and exits from GSM framework.

Summary

BSE has announced changes to the Graded Surveillance Measure (GSM) classification for four securities effective November 28, 2025. The circular details securities moving to different GSM stages, with one security (Phaarmasia Ltd) moving to lower GSM stage (Stage 0) due to inclusion in Enhanced Surveillance Measure (ESM) framework, two securities moving to Stage I, and two securities advancing to Stage II.

Key Points

• Four securities are changing their GSM stage classifications
• Phaarmasia Ltd (523620) is moving to Stage 0 due to ESM framework inclusion
• Tiaan Consumer Limited (540108) is moving to GSM Stage I
• Starcom Information Technology (531616) is moving to GSM Stage II
• LCC Infotech Ltd (532019) is moving to GSM Stage II
• Securities can move to lower GSM stages when included in ESM or IBC frameworks

Regulatory Changes

The GSM framework provides a structured surveillance mechanism where securities are placed in different stages based on specific criteria. Securities can move between stages or exit GSM when subjected to other surveillance frameworks like ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code) framework.

Compliance Requirements

Market participants and investors should:

• Note the changed GSM stage for affected securities
• Understand that different GSM stages have varying trading restrictions and margin requirements
• Monitor securities in higher GSM stages (Stage II) more closely due to increased surveillance
• Be aware that Phaarmasia Ltd is now under ESM framework instead of GSM

Important Dates

• Effective Date: November 28, 2025 - GSM stage changes become applicable

Impact Assessment

Trading Impact: Securities moving to higher GSM stages (Stage II) typically face stricter trading conditions including higher margins, price-to-price delivery settlement, and reduced leverage. The two securities moving to Stage II (Starcom Information Technology and LCC Infotech Ltd) will experience these enhanced restrictions.

Investor Impact: Investors holding or trading these securities should expect:

• Increased margin requirements for higher stage securities
• Potential liquidity constraints due to surveillance measures
• Enhanced monitoring and disclosure requirements

Market Significance: The movement of Phaarmasia Ltd from GSM to ESM indicates more serious concerns requiring enhanced surveillance beyond the graded framework. Tiaan Consumer Limited entering Stage I serves as an early warning, while the two securities in Stage II face significant trading restrictions.

Securities Details

Impact Justification

Affects trading conditions for four securities through GSM stage transitions; includes one security exiting GSM due to ESM inclusion