Description

BSE announces movement of three securities into Graded Surveillance Measure stages: Caprolactam Chemicals to Stage I, and Indsoya Ltd and Sybly Industries to Stage II.

Summary

BSE has announced the movement of three securities into their respective Graded Surveillance Measure (GSM) stages effective from the circular date. Caprolactam Chemicals Ltd (507486) is moving to GSM Stage I, while Indsoya Ltd (503639) and Sybly Industries Ltd (531499) are both moving to GSM Stage II. The GSM framework is a surveillance measure designed to alert investors about securities showing certain abnormal price movements or other parameters.

Key Points

  • Three securities are being moved to higher GSM surveillance stages
  • Caprolactam Chemicals Ltd (ISIN: INE470N01010) - Moving to GSM Stage I
  • Indsoya Ltd (ISIN: INE314N01028) - Moving to GSM Stage II
  • Sybly Industries Ltd (ISIN: INE080D01042) - Moving to GSM Stage II
  • Securities may move to lower GSM stages if included in ESM or IBC frameworks
  • GSM classification is aligned with NSE

Regulatory Changes

The circular implements surveillance stage changes under the existing GSM framework. Securities in higher GSM stages are subject to progressive restrictions including:

  • Trade-for-trade settlement (no intraday trading)
  • Price bands
  • 100% upfront margin requirements
  • Additional disclosure requirements
  • Periodic review for continued surveillance

Compliance Requirements

  • Market participants must ensure compliance with GSM-specific trading restrictions for these securities
  • Brokers must collect 100% upfront margins from clients for trades in these securities
  • Only delivery-based trading permitted (no intraday speculation)
  • Investors should be made aware of the surveillance status before executing trades

Important Dates

  • Effective Date: December 2, 2025 (circular date)
  • Securities will trade under respective GSM stages from the effective date

Impact Assessment

Market Impact: The movement to GSM stages will likely reduce trading volumes and liquidity in these securities due to additional restrictions. Price discovery may be affected due to trade-for-trade settlement requirements.

Investor Impact: Existing shareholders face reduced liquidity for exit. New investors must provide full upfront margins. The surveillance classification serves as a caution signal about unusual price or volume behavior in these stocks.

Operational Impact: Brokers and trading members must update their systems to enforce GSM-specific restrictions including margin collection, settlement processes, and client disclosures for these three securities.

Impact Justification

Movement to GSM stages indicates heightened surveillance and may result in trading restrictions for three securities, affecting existing shareholders and liquidity.