Description

BSE notifies movement of 6 securities into various stages of the Graded Surveillance Measure framework, with 4 securities moving to Stage I and 2 securities moving to Stage III.

Summary

BSE has announced the movement of 6 securities into different stages of the Graded Surveillance Measure (GSM) framework. Four securities - N2N Technologies Limited, Kashyap Tele-Medicines Limited, Hari Govind International Ltd., and Kcd Industries India Limited - are moving into GSM Stage I. Two securities - Monind Limited and Decorous Investment And Trading Co. Ltd. - are moving into GSM Stage III. The GSM framework is designed to enhance market surveillance and investor protection by imposing additional restrictions on securities exhibiting unusual price movements or other concerns.

Key Points

  • 4 securities moving to GSM Stage I: N2N Technologies (512279), Kashyap Tele-Medicines (531960), Hari Govind International (531971), and Kcd Industries India (540696)
  • 2 securities moving to GSM Stage III: Monind Limited (532078) and Decorous Investment And Trading Co. Ltd. (539405)
  • Securities marked with special symbols may be moving to lower GSM stages due to inclusion in ESM Framework (#) or IBC Framework ($)
  • Stage migration indicates enhanced surveillance requirements and trading restrictions

Regulatory Changes

The securities listed will be subject to the trading restrictions and surveillance measures applicable to their respective GSM stages. Stage I typically involves basic surveillance measures, while Stage III involves more stringent restrictions including higher margin requirements and trade-to-trade settlement. The framework allows for progressive tightening of surveillance measures based on security behavior.

Compliance Requirements

  • Trading members must ensure compliance with stage-specific margin requirements for these securities
  • Investors should be aware of enhanced surveillance status and associated trading restrictions
  • Brokers must inform clients about the GSM stage and its implications before executing trades
  • All trades in these securities will be subject to stage-specific settlement and margin norms

Important Dates

  • Circular Date: December 8, 2025
  • Effective Date: As per exchange notification (typically immediate or next trading day)

Impact Assessment

Market Impact: The placement of securities in GSM stages typically results in reduced liquidity due to enhanced margin requirements and trading restrictions. Investors may face higher transaction costs and reduced trading flexibility. Stage I placements indicate early-stage concerns, while Stage III placements suggest more serious issues requiring stricter surveillance.

Investor Impact: Existing investors in these securities should expect potential volatility and liquidity constraints. New investors should exercise caution and conduct thorough due diligence. The GSM placement serves as a warning signal about potential concerns related to price movements, volatility, or corporate governance.

Operational Impact: Trading members must update their systems to reflect the new GSM stages and ensure proper margin collection. Risk management systems should be calibrated to account for the enhanced surveillance status of these securities.

Impact Justification

Affects trading conditions for 6 securities under enhanced surveillance; Stage I and III placements indicate varying levels of concern regarding price movements or corporate governance issues