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 under the Graded Surveillance Measure framework.

Summary

BSE has announced the movement of 6 securities into their respective Graded Surveillance Measure (GSM) stages effective December 9, 2025. Four securities are being moved to GSM Stage II, while two securities are advancing to GSM Stage IV. The GSM framework is a surveillance mechanism used by exchanges to monitor securities exhibiting abnormal price movements or other market integrity concerns.

Key Points

  • 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 marked with (#) move lower in GSM framework due to inclusion in ESM (Enhanced Surveillance Measure) Framework
  • Securities marked with ($) move lower in GSM framework due to inclusion in IBC (Insolvency and Bankruptcy Code) Framework
  • GSM stages impose progressively stricter trading restrictions

Securities Details

Moving to GSM Stage II:

  1. N2N Technologies Limited (Security Code: 512279, ISIN: INE043F01011)
  2. Woodsvilla Ltd. (Security Code: 526959, ISIN: INE374J01020)
  3. Vikalp Securities Ltd. (Security Code: 531334, ISIN: INE186E01011)
  4. Kcd Industries India Limited (Security Code: 540696, ISIN: INE185U01035)

Moving to GSM Stage IV:

  1. Integra Switchgear Ltd. (Security Code: 517423, ISIN: INE0IPL01018)
  2. Monind Limited (Security Code: 532078, ISIN: INE407E01029)

Regulatory Changes

The GSM framework operates in multiple stages with increasing levels of surveillance:

  • Stage II: Typically involves reduced price bands, additional disclosure requirements, and trade-for-trade settlement
  • Stage IV: Involves more stringent restrictions including further reduced price bands, 100% upfront margin requirements, and trade-for-trade settlement in rolling settlement

Securities can be placed in GSM for reasons including unusual price movements, low market capitalization, high price-earnings ratio, or other market integrity concerns.

Compliance Requirements

  • Investors holding or trading these securities must comply with enhanced margin requirements
  • All trades in GSM securities will be settled on a trade-for-trade basis (no netting)
  • Broker-dealers must ensure clients are aware of GSM restrictions before executing trades
  • Enhanced disclosure and reporting requirements apply to these securities
  • Price bands will be reduced as per GSM stage specifications

Important Dates

  • Effective Date: December 9, 2025
  • Movement into respective GSM stages is immediate upon circular issuance

Impact Assessment

Market Impact: High - The movement of securities into higher GSM stages significantly impacts trading liquidity and investor participation. Stage IV placement is particularly severe, indicating serious surveillance concerns.

Trading Impact: Securities in GSM face reduced liquidity due to trade-for-trade settlement, higher margin requirements, and reduced price bands. This typically leads to wider bid-ask spreads and lower trading volumes.

Investor Impact: Existing investors may face difficulty exiting positions due to reduced liquidity. New investors face higher trading costs and margin requirements. The GSM placement serves as a regulatory warning signal about potential risks.

Operational Impact: Brokers must update their systems to reflect GSM restrictions, ensure adequate risk management for these securities, and provide appropriate disclosures to clients before accepting orders.

Impact Justification

Movement into GSM stages indicates enhanced surveillance due to concerns about price movements or market integrity. Stage II and IV placements result in stricter trading restrictions including reduced price bands and trade-for-trade settlement, significantly impacting liquidity and trading activity for these securities.