Description
BSE announces movement of 6 securities into different GSM stages, with 4 securities moving to Stage II and 2 securities moving to Stage IV effective December 9, 2025.
Summary
BSE has announced the movement of 6 securities into different stages of the Graded Surveillance Measure (GSM) framework. Four securities are being moved to GSM Stage II, while two securities are being moved to GSM Stage IV, which represents a higher level of surveillance and stricter trading restrictions.
Key Points
- Total of 6 securities affected by GSM stage changes
- 4 securities moving to GSM Stage II: N2N Technologies Limited, Woodsvilla Ltd., Vikalp Securities Ltd., and Kcd Industries India Limited
- 2 securities moving to GSM Stage IV: Integra Switchgear Ltd. and Monind Limited
- Securities may move to lower GSM stages if included in ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code) frameworks
- Stage IV represents more stringent surveillance compared to Stage II
Securities Moving to GSM Stage II
| Security Code | ISIN | Security Name | GSM Stage |
|---|---|---|---|
| 512279 | INE043F01011 | N2N Technologies Limited | II |
| 526959 | INE374J01020 | Woodsvilla Ltd. | II |
| 531334 | INE186E01011 | Vikalp Securities Ltd. | II |
| 540696 | INE185U01035 | Kcd Industries India Limited | II |
Securities Moving to GSM Stage IV
| Security Code | ISIN | Security Name | GSM Stage |
|---|---|---|---|
| 517423 | INE0IPL01018 | Integra Switchgear Ltd. | IV |
| 532078 | INE407E01029 | Monind Limited | IV |
Regulatory Framework
The Graded Surveillance Measure (GSM) is a framework implemented by stock exchanges to enhance market surveillance and protect investor interests. Securities are placed under GSM based on various criteria including price movements, volume variations, market capitalization, and other surveillance parameters.
Stage-wise Implications:
- GSM Stage II: Moderate surveillance with certain trading restrictions
- GSM Stage IV: Higher surveillance with more stringent trading conditions including potential additional margins and trade-to-trade settlement
Special Notations:
- Securities marked (#) move to lower GSM stages due to inclusion in ESM Framework
- Securities marked ($) move to lower GSM stages due to inclusion in IBC Framework
- (*) Indicates alignment with NSE classifications
Compliance Requirements
- Investors trading in these securities should be aware of the enhanced surveillance measures applicable
- Additional margin requirements may apply for securities in higher GSM stages
- Settlement cycles may be modified to trade-for-trade basis
- Brokers and trading members must ensure compliance with GSM-specific trading conditions
- Investors should exercise increased caution and conduct thorough due diligence before trading in GSM securities
Important Dates
- Effective Date: December 9, 2025
- Circular Date: December 9, 2025
Impact Assessment
Market Impact:
- Movement to higher GSM stages typically results in reduced liquidity for affected securities
- Trading volumes may decline due to stricter surveillance and margin requirements
- Price discovery may be affected due to reduced market participation
- Investor sentiment may be negatively impacted for securities moving to Stage IV
Investor Impact:
- Higher margins may be required for trading these securities
- Increased risk perception may lead to wider bid-ask spreads
- Exit opportunities may become limited due to reduced liquidity
- Institutional participation may decrease in higher GSM stage securities
Operational Impact:
- Brokers need to update risk management systems for margin calculations
- Enhanced monitoring and reporting requirements for trading members
- Potential impact on algorithmic trading strategies involving these securities
- Settlement processes may require adjustments for trade-to-trade requirements
Impact Justification
Movement to higher GSM stages indicates increased surveillance due to price volatility or other concerns, significantly impacting trading conditions and investor sentiment for the affected securities.