Description

BSE announces movement of 5 securities into higher GSM stages, with 4 companies moving to Stage II and 1 company to Stage III under the Graded Surveillance Measure framework.

Summary

BSE has announced the movement of 5 securities into their respective Graded Surveillance Measure (GSM) stages effective from the date of this circular. Four companies are moving to GSM Stage II, while one company is moving to the more restrictive GSM Stage III. The GSM framework is designed to alert investors about securities that have witnessed abnormal price rise and alert them to exercise additional diligence before trading in such securities.

Key Points

  • 4 securities moving to GSM Stage II: APT Packaging Ltd., Indergiri Finance Ltd., City Online Services Limited, and Scintilla Commercial & Credit Limited
  • 1 security moving to GSM Stage III: Shivansh Finserv Limited
  • Securities may move to lower GSM stages if included in ESM Framework (marked with #) or IBC Framework (marked with $)
  • Stage classifications are as per NSE standards

Securities Details

Moving to GSM Stage II

  1. APT Packaging Ltd. (Security Code: 506979, ISIN: INE046E01025)
  2. Indergiri Finance Ltd. (Security Code: 531505, ISIN: INE628F01019)
  3. City Online Services Limited (Security Code: 538674, ISIN: INE158C01014)
  4. Scintilla Commercial & Credit Limited (Security Code: 538857, ISIN: INE892C01018)

Moving to GSM Stage III

  1. Shivansh Finserv Limited (Security Code: 539593, ISIN: INE728Q01014)

Regulatory Framework

The Graded Surveillance Measure (GSM) is a multi-stage framework with progressive restrictions:

  • Stage II: Represents elevated surveillance with additional monitoring and disclosure requirements
  • Stage III: Indicates heightened concerns requiring more stringent surveillance measures

Securities may move to lower GSM stages if they are included in:

  • Enhanced Surveillance Measure (ESM) Framework
  • Insolvency and Bankruptcy Code (IBC) Framework

Compliance Requirements

  • Trading members and investors should exercise enhanced due diligence when trading in these securities
  • Additional margin requirements and trading restrictions may apply based on GSM stage
  • Investors are advised to be cautious and aware of higher risks associated with securities under GSM

Important Dates

  • Effective Date: December 3, 2025 (as per circular date)

Impact Assessment

Market Impact: The placement of securities in higher GSM stages serves as a warning signal to market participants about potential risks. Trading volumes may be affected as some investors may avoid or reduce exposure to these securities.

Operational Impact: Trading members need to ensure proper risk management systems are in place for handling GSM securities. Additional margin requirements and position limits may impact trading strategies.

Investor Impact: Retail and institutional investors should exercise heightened caution. The GSM classification indicates regulatory concerns about price movements or corporate governance issues that warrant additional surveillance.

Impact Justification

Movement to higher GSM stages indicates increased surveillance due to concerns around price volatility or other parameters. Stage III placement for Shivansh Finserv indicates more stringent monitoring measures.