Description

BSE publishes updated list of 61+ securities under Graded Surveillance Measure (GSM) framework with applicable price bands and groups.

Summary

BSE has issued an updated list of securities under the Graded Surveillance Measure (GSM) framework. The circular identifies 61+ securities across various scrip codes with specific price bands (ranging from 1% to 20%) and applicable trading groups (X, XT, M, MT, P, T, Z, B). This surveillance mechanism is designed to monitor securities that exhibit abnormal price movements or trading patterns.

Key Points

  • 61+ securities listed under GSM framework with varying surveillance levels
  • Price bands range from 1% to 20% depending on the security
  • Securities categorized into different groups: X, XT, M, MT, P, T, Z, B
  • Each security identified by scrip code, full name, and ISIN code
  • Includes companies from diverse sectors including pharmaceuticals, textiles, finance, and manufacturing
  • Notable inclusions: Indiabulls Ltd (5% band, Group B), Future Supply Chain Solutions Ltd (5% band, Group Z)

Regulatory Changes

This circular represents an update to the existing GSM framework. The GSM is a dynamic surveillance mechanism where securities are periodically reviewed and categorized based on market behavior, volatility, and compliance issues. Securities under GSM face enhanced monitoring and trading restrictions to protect investor interests.

Compliance Requirements

  • Trading members must be aware of applicable price bands for each security
  • Investors should note the restricted trading groups and associated limitations
  • Brokers must ensure clients understand the surveillance status and implications
  • Enhanced disclosures may be required for transactions in GSM securities
  • Trading in these securities subject to stricter margin requirements and position limits

Important Dates

  • Circular Date: December 8, 2025
  • Effective immediately upon publication

Impact Assessment

Market Impact: High - The GSM framework significantly restricts trading activity in affected securities through tight price bands and group classifications. Securities in stricter groups (Z, XT) face severe trading limitations.

Investor Impact: Investors holding or trading these securities face reduced liquidity, limited price discovery, and potential difficulties in entry/exit. The tight price bands (some as low as 1-2%) severely restrict intraday price movements.

Operational Impact: Brokers and trading members must update systems to enforce applicable price bands and group restrictions. Enhanced surveillance and monitoring required for client transactions in these securities.

Risk Mitigation: The GSM framework aims to protect investors from excessive speculation and abnormal price volatility in securities with weak fundamentals or compliance issues.

Impact Justification

High surveillance framework affecting 61+ securities with strict price bands and trading group restrictions. Significant impact on trading activity and investor access to these stocks.