Description

Three securities are being moved to higher GSM stages: Ador Multiproducts Ltd. to Stage II, and Apt Packaging Ltd. and Indergiri Finance Ltd. to Stage III.

Summary

BSE has announced the movement of three securities into higher stages of the Graded Surveillance Measure (GSM) framework. Ador Multiproducts Ltd. is being moved to GSM Stage II, while Apt Packaging Ltd. and Indergiri Finance Ltd. are being moved to GSM Stage III. The GSM framework is applied to securities exhibiting abnormal price movements or other concerning trading patterns.

Key Points

  • Ador Multiproducts Ltd. (Security Code: 523120, ISIN: INE628D01014) is being moved to GSM Stage II
  • Apt Packaging Ltd. (Security Code: 506979, ISIN: INE046E01025) is being moved to GSM Stage III
  • Indergiri Finance Ltd. (Security Code: 531505, ISIN: INE628F01019) is being moved to GSM Stage III
  • Securities marked (#) move to lower GSM stages due to inclusion in ESM Framework
  • Securities marked ($) move to lower GSM stages due to inclusion in IBC Framework
  • Classification follows NSE standards as indicated

Regulatory Changes

The movement to higher GSM stages brings additional surveillance measures and trading restrictions:

  • GSM Stage II: Enhanced monitoring with potential trade-to-trade settlement, price bands, and additional margin requirements
  • GSM Stage III: More stringent surveillance including mandatory trade-to-trade settlement, reduced price bands, higher margin requirements, and restricted trading conditions

Compliance Requirements

  • Trading members must ensure compliance with enhanced surveillance requirements for these securities
  • Clients trading in these securities should be aware of increased margin requirements
  • Trade-to-trade settlement applies, meaning positions cannot be netted off
  • All transactions in these securities will be subject to enhanced monitoring
  • Brokers should inform clients about the GSM stage classification and associated restrictions

Important Dates

  • Effective Date: December 04, 2025 (circular issuance date)
  • The GSM stage changes would typically take effect from the next trading session unless otherwise specified

Impact Assessment

Market Impact: High - The movement to higher GSM stages significantly impacts liquidity and trading activity in these securities. Stage III classification is particularly restrictive and may deter speculative trading.

Investor Impact: Investors holding or trading these securities will face:

  • Reduced liquidity due to trade-to-trade settlement
  • Higher margin requirements leading to increased capital commitment
  • Potential difficulty in executing large orders
  • Enhanced scrutiny of trading activity

Operational Impact: Trading members must update their systems to reflect the new GSM stage classifications and ensure proper risk management controls are in place for these securities. The restrictions aim to protect investor interests by curbing excessive speculation and price manipulation.

Impact Justification

Movement to higher GSM stages indicates increased surveillance due to price volatility or other concerns, directly impacting trading in these securities with stricter monitoring and potential restrictions.