Description

Four securities have been moved to different GSM stages: two companies moved to Stage II and two companies moved to Stage III under the surveillance framework.

Summary

BSE has announced the movement of four securities into different stages of the Graded Surveillance Measure (GSM) framework. Two companies - Sinnar Bidi Udyog Ltd. and Monind Limited - have been moved to GSM Stage II, while Hemo Organic Limited and Scintilla Commercial & Credit Limited have been moved to GSM Stage III, indicating higher levels of surveillance.

Key Points

  • Four securities are being moved to different GSM stages effective from the circular date
  • Sinnar Bidi Udyog Ltd. (Security Code: 509887, ISIN: INE896E01023) moved to GSM Stage II
  • Monind Limited (Security Code: 532078, ISIN: INE407E01029) moved to GSM Stage II
  • Hemo Organic Limited (Security Code: 524590, ISIN: INE422G01015) moved to GSM Stage III
  • Scintilla Commercial & Credit Limited (Security Code: 538857, ISIN: INE892C01018) moved to GSM Stage III
  • Securities may move to lower GSM stages if included in ESM Framework or IBC Framework

Regulatory Changes

The GSM framework applies graded surveillance measures on securities based on specific criteria. Movement to higher stages (Stage II and Stage III) indicates increased regulatory scrutiny and typically involves additional trading restrictions, increased margin requirements, and closer monitoring of trading activities.

Compliance Requirements

  • Market participants trading in these securities must comply with the enhanced surveillance measures applicable to their respective GSM stages
  • Higher margin requirements may apply for trading in these securities
  • Additional disclosures and reporting requirements may be imposed on the listed companies
  • Trading members should ensure clients are aware of the surveillance status of these securities

Important Dates

  • Effective Date: December 5, 2025 (circular date)

Impact Assessment

Market Impact: The movement to higher GSM stages will result in increased trading costs through higher margin requirements and potentially reduced liquidity in these securities. Stage III designation carries more stringent restrictions than Stage II.

Investor Impact: Investors holding or trading these securities will face higher transaction costs and additional compliance burdens. The surveillance designation may impact investor sentiment and trading volumes.

Operational Impact: Brokers and trading members will need to update their systems to reflect the new surveillance status and ensure proper margin collection and risk management for these securities.

Impact Justification

Affects four securities with heightened surveillance measures. Stage movements indicate increased monitoring requirements and trading restrictions for specific stocks.