Description

Four securities are being moved to higher GSM stages - two securities moving to Stage II and two to Stage III under the Graded Surveillance Measure framework.

Summary

BSE has announced the movement of four securities into higher stages of the Graded Surveillance Measure (GSM) framework effective from the specified date. Two securities are moving to GSM Stage II and two securities are moving to GSM Stage III, which involve progressively stricter surveillance and trading restrictions.

Key Points

  • Sinnar Bidi Udyog Ltd. (509887) moving to GSM Stage II
  • Monind Limited (532078) moving to GSM Stage II
  • Hemo Organic Limited (524590) moving to GSM Stage III
  • Scintilla Commercial & Credit Limited (538857) moving to GSM Stage III
  • Securities may move to lower GSM stages if included in ESM or IBC frameworks

Affected Securities

Moving to GSM Stage II

Security CodeISINSecurity Name
509887INE896E01023Sinnar Bidi Udyog Ltd.
532078INE407E01029Monind Limited

Moving to GSM Stage III

Security CodeISINSecurity Name
524590INE422G01015Hemo Organic Limited
538857INE892C01018Scintilla Commercial & Credit Limited

Regulatory Changes

The GSM framework applies graded surveillance measures to securities based on specific criteria. Higher GSM stages involve:

  • Additional surveillance deposit requirements
  • Trade-for-trade settlement with no intraday leverage
  • Price bands and other trading restrictions
  • Increased reporting and compliance requirements

Compliance Requirements

  • Trading members must ensure compliance with GSM stage-specific requirements for these securities
  • Clients trading in these securities should be aware of applicable restrictions including trade-for-trade settlement
  • Additional margin and surveillance deposit requirements apply
  • No intraday trading or leverage available for these securities

Important Dates

  • Effective Date: December 5, 2025 (or as specified in the circular)

Impact Assessment

Trading Impact: Securities moving to higher GSM stages face increased trading restrictions, reduced liquidity, and mandatory trade-for-trade settlement. This typically results in lower trading volumes and wider bid-ask spreads.

Investor Impact: Investors holding or trading these securities will face stricter requirements including higher margin obligations and no intraday trading facility. This may reduce speculative interest.

Market Signal: Movement to higher GSM stages indicates potential concerns regarding price volatility, compliance issues, or other surveillance triggers, signaling investors to exercise increased caution.

Framework Notes: Securities marked with (#) move to lower GSM stages if included in ESM framework, while those marked ($) move lower if included in IBC framework. Some classifications reference NSE designations.

Impact Justification

Affects four securities moving to higher GSM surveillance stages, indicating increased trading restrictions and monitoring. Limited to specific securities but signals compliance concerns.