Description

BSE updates the list of securities under the Graded Surveillance Measure (GSM) framework with applicable price bands and groups for 61 companies.

Summary

BSE has published an update to the Graded Surveillance Measure (GSM) framework listing 61 securities with their applicable price bands and trading groups. The list includes companies across various surveillance categories (Groups X, M, XT, P, Z, B, MT, T) with price bands ranging from 1% to 20%. This framework is designed to enhance market surveillance and protect investor interests by imposing trading restrictions on securities that exhibit abnormal price movements or other risk factors.

Key Points

  • 61 securities are listed under the GSM framework with updated surveillance parameters
  • Price bands range from 1% to 20% depending on the risk profile of the security
  • Securities are classified into different groups: X, M, XT, P, Z, B, MT, and T
  • Each security has been assigned a specific scrip code and ISIN for identification
  • The surveillance measures include various trading restrictions based on group classification
  • Group X appears most frequently (26 securities), followed by XT (15 securities)

Regulatory Changes

This circular updates the existing GSM framework by:

  • Revising the list of securities under enhanced surveillance
  • Updating applicable price bands for specific securities
  • Reassigning securities to appropriate surveillance groups based on their trading characteristics
  • Maintaining different levels of surveillance intensity through group classifications

Compliance Requirements

  • Trading members must adhere to the specified price bands for each listed security
  • All trades in these securities must comply with the group-specific restrictions
  • Investors trading in GSM securities should be aware of the enhanced surveillance and associated trading limitations
  • Brokers must ensure proper risk disclosure to clients trading in GSM securities
  • Settlement and margin requirements specific to each group must be followed

Important Dates

  • Circular Date: December 8, 2025
  • Effective Date: Not explicitly mentioned in the content provided

Impact Assessment

Market Impact:

  • Trading in the 61 listed securities will be subject to enhanced surveillance measures
  • Tighter price bands may reduce volatility but could also impact liquidity
  • Investors may exercise greater caution when trading these securities

Operational Impact:

  • Trading members must update their systems to reflect the correct price bands and group classifications
  • Risk management systems need to account for group-specific restrictions
  • Enhanced monitoring required for all transactions in these securities

Investor Impact:

  • Reduced risk of sudden price manipulation in these securities
  • Potential liquidity constraints due to surveillance measures
  • Greater transparency regarding securities under regulatory watch

Impact Justification

Regular surveillance framework update affecting 61 securities with varying price bands and group classifications that impact trading conditions for these stocks