Description

BSE announces movement of five securities into higher stages of Graded Surveillance Measure (GSM), with four companies moving to Stage II and one to Stage III.

Summary

BSE has issued a circular identifying five securities that are moving into higher stages of the Graded Surveillance Measure (GSM) framework. Four companies are advancing to GSM Stage II, while one company is moving directly to GSM Stage III, indicating heightened regulatory scrutiny and trading restrictions.

Key Points

  • APT Packaging Ltd. (506979) moving to GSM Stage II
  • Indergiri Finance Ltd. (531505) moving to GSM Stage II
  • City Online Services Limited (538674) moving to GSM Stage II
  • Scintilla Commercial & Credit Limited (538857) moving to GSM Stage II
  • Shivansh Finserv Limited (539593) moving to GSM Stage III
  • Securities marked with (#) move to lower GSM stages when included in ESM Framework
  • Securities marked with ($) move to lower GSM stages when included in IBC Framework

Regulatory Changes

The GSM framework imposes progressive surveillance measures on securities exhibiting abnormal price movements or trading patterns. Movement to higher stages results in:

  • Additional disclosure requirements for trades
  • Higher margin requirements for trading
  • Trade-for-trade settlement with no intraday leverage
  • Price bands restrictions
  • Periodic review of trading activity

Compliance Requirements

  • Investors trading in these securities must comply with enhanced margin requirements applicable to their respective GSM stages
  • Brokers must ensure clients are aware of GSM classifications before executing trades
  • Additional disclosures and confirmations may be required for trades in Stage III securities
  • Delivery-based settlement mandatory with no opportunity for intraday squaring off

Important Dates

  • Effective Date: December 3, 2025
  • The stage changes are applicable from the date of this circular

Impact Assessment

Market Impact: Limited to five specific securities with relatively lower liquidity. Enhanced surveillance will further restrict speculative trading in these stocks.

Trading Impact: Investors will face higher transaction costs due to increased margins, reduced liquidity, and mandatory delivery-based settlement. Intraday traders will be unable to participate in these securities.

Investor Impact: Long-term investors may face difficulty exiting positions due to reduced liquidity. Short-term traders and speculators will find these securities unattractive due to capital requirements and trading restrictions.

Operational Impact: Brokers must update their systems to reflect GSM stage changes and ensure proper risk management controls are applied to trades in these securities.

Impact Justification

Affects five securities with enhanced surveillance measures that impact trading conditions and investor obligations, but limited to specific stocks rather than broad market impact