Description

BSE publishes updated list of 54+ securities under Graded Surveillance Measure (GSM) framework based on Criteria 1 and/or Criteria 2, effective December 15, 2025.

Summary

BSE has published an updated list of securities under the Graded Surveillance Measure (GSM) framework effective December 15, 2025. The list contains 54+ companies that have been shortlisted based on Criteria 1 and/or Criteria 2 of the GSM framework. These securities will be subject to enhanced surveillance and trading restrictions to protect investors and maintain market integrity.

Key Points

  • Updated GSM list effective from December 15, 2025
  • 54+ securities shortlisted under GSM framework
  • Companies classified under Criteria 1, Criteria 2, or both
  • Includes companies from various sectors including textiles, finance, infrastructure, and manufacturing
  • Enhanced surveillance applies to protect investors from excessive volatility and potential market manipulation
  • Trading in these securities subject to additional restrictions and margin requirements

Regulatory Changes

Securities under GSM framework are subject to:

  • Enhanced surveillance monitoring
  • Possible price bands or trading restrictions
  • Additional margin requirements for trading
  • Reduced position limits
  • Periodic review for continuation or removal from GSM list

Compliance Requirements

For Listed Companies:

  • Must comply with enhanced disclosure requirements
  • Subject to additional corporate governance scrutiny
  • Required to address underlying concerns that led to GSM classification

For Market Participants:

  • Traders and investors must maintain higher margins for GSM securities
  • Additional due diligence recommended before trading
  • Awareness of restricted trading parameters

For Brokers:

  • Must ensure clients are aware of GSM status
  • Implement appropriate risk management for GSM securities
  • Comply with enhanced margin collection requirements

Important Dates

  • Effective Date: December 15, 2025 - GSM framework applies to listed securities
  • Circular Date: December 5, 2025

Impact Assessment

Market Impact:

  • Reduced liquidity in affected securities due to trading restrictions
  • Higher transaction costs due to increased margin requirements
  • Potential price volatility during transition period
  • Investor caution leading to reduced trading volumes

Investor Impact:

  • Higher capital requirements for trading these securities
  • Limited ability to take large positions
  • Enhanced risk awareness required
  • Potential difficulty in entry/exit due to reduced liquidity

Company Impact:

  • Reputational concerns from GSM classification
  • Reduced investor interest and market capitalization pressure
  • Incentive to address underlying issues for removal from GSM
  • Enhanced regulatory scrutiny on corporate actions

Companies Under Surveillance

The list includes diverse companies such as Aarcon Facilities Ltd, Amanaya Ventures Ltd, Ansal Properties & Infrastructure Ltd, Arshiya Ltd, Ashiana Ispat Ltd, Ashish Polyplast Ltd, Blue Coast Hotels Ltd, Celebrity Fashions Ltd, Covidh Technologies Ltd, Family Care Hospitals Ltd, Infronics Systems Ltd, Kakatiya Textiles Ltd, Morarjee Textiles Ltd, PBA Infrastructure Ltd, Regency Ceramics Ltd, Sadbhav Engineering Ltd, and many others across various industries.

Impact Justification

Enhanced surveillance measures significantly impact trading of 54+ listed securities with additional compliance requirements, price bands, and margin requirements affecting investor access and liquidity.