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

Description

BSE announces movement of 5 securities into various stages of the Graded Surveillance Measure framework, with one security moving out due to IBC Framework inclusion.

Summary

BSE has issued the list of securities being moved into various stages of the Graded Surveillance Measure (GSM) framework. Five securities are affected: one security (Tiaan Consumer Ltd) is moving out of GSM Stage due to inclusion in IBC Framework, one security is moving into GSM Stage I, and three securities are moving into GSM Stage II. The GSM framework is designed to enhance market surveillance and alert investors about securities that have witnessed unusual price movements.

Key Points

• 5 securities are being moved into or out of different GSM stages
• Tiaan Consumer Ltd (540108) is moving to Stage 0 due to IBC Framework inclusion
• Triliance Polymers Limited (509046) is moving into GSM Stage I
• Three securities moving into GSM Stage II: Avi Products India Limited (523896), Shivansh Finserv Limited (539593), and Nirmitee Robotics India Limited (543194)
• Securities in GSM face additional surveillance measures and trading restrictions
• Movement between stages is based on predefined criteria including price volatility and trading patterns

Regulatory Changes

The GSM framework applies progressive surveillance measures as securities move through stages. Securities marked with ($) are moving to lower GSM stages due to inclusion in the IBC (Insolvency and Bankruptcy Code) Framework, while those marked (#) move lower due to ESM (Enhanced Surveillance Measure) Framework inclusion. This represents the ongoing dynamic adjustment of surveillance categories based on company-specific circumstances.

Compliance Requirements

• Trading members must ensure compliance with applicable GSM stage restrictions for these securities
• Additional surveillance margins and trading restrictions apply based on GSM stage
• Investors should be aware of the enhanced risk associated with securities under GSM
• Brokers must provide adequate risk disclosure to clients trading in these securities
• Stage-specific position limits and price bands will be applicable

Important Dates

• Effective Date: December 1, 2025 (circular issue date)
• The stage transitions will be implemented as per BSE’s standard GSM implementation timeline

Impact Assessment

Market Impact: High impact on the specific securities listed, as GSM placement typically results in reduced liquidity, higher margins, and increased scrutiny. Trading volumes may decline due to additional restrictions and investor caution.

Investor Impact: Existing investors in these securities face potential liquidity constraints and higher trading costs. New investors must meet stricter eligibility criteria for some GSM stages.

Operational Impact: Trading members must update their risk management systems to reflect the new GSM stages and ensure proper margin collection and disclosure compliance.

Securities Details

Impact Justification

Movement into GSM stages significantly impacts trading conditions for affected securities, with stricter surveillance measures. High impact for specific stock investors but affects only 5 securities.