Description
BSE announces movement of five securities into higher stages of Graded Surveillance Measure (GSM) framework, with four moving to Stage III and one to Stage IV.
Summary
BSE has announced the movement of five securities into higher stages of the Graded Surveillance Measure (GSM) framework. Four securities - Mathew Easow Research Securities Ltd, JMG Corporation Ltd, Sparkle Gold Rock Ltd, and Tacent Projects Ltd - are moving to GSM Stage III, while Woodsvilla Ltd is moving to GSM Stage IV, the highest surveillance level.
Key Points
- Four securities moving to GSM Stage III: Mathew Easow Research Securities Ltd (511688), JMG Corporation Ltd (523712), Sparkle Gold Rock Ltd (530037), and Tacent Projects Ltd (531887)
- One security moving to GSM Stage IV: Woodsvilla Ltd (526959)
- Securities can move to lower GSM stages if included in ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code) frameworks
- Movement indicates heightened surveillance due to specific risk parameters
Securities Details
| Security Code | ISIN | Security Name | Moving to Stage |
|---|---|---|---|
| 511688 | INE963B01019 | Mathew Easow Research Securities Ltd | III |
| 523712 | INE745F01011 | JMG Corporation Ltd | III |
| 530037 | INE618F01010 | Sparkle Gold Rock Ltd | III |
| 531887 | INE149D01011 | Tacent Projects Ltd | III |
| 526959 | INE374J01020 | Woodsvilla Ltd | IV |
Regulatory Changes
The GSM framework imposes progressive restrictions as securities move through different stages. Higher stages typically involve:
- Reduced price bands
- Additional disclosure requirements
- Trade-for-trade settlement with 100% upfront margin
- Increased scrutiny of trading patterns
Compliance Requirements
- Brokers must inform clients about the surveillance status of these securities
- Trading members must ensure compliance with additional margin requirements for GSM securities
- Investors should be aware of the increased surveillance and associated trading restrictions
- Companies under GSM must comply with enhanced disclosure norms
Important Dates
- Circular Date: December 11, 2025
- Effective implementation as per BSE surveillance framework guidelines
Impact Assessment
Market Impact: Movement to higher GSM stages significantly restricts trading activity in these securities. Stage III and IV designations indicate serious concerns about volatility, price manipulation, or corporate governance issues. Investors will face:
- Reduced liquidity due to trade-for-trade settlement
- Higher margin requirements
- Limited participation from institutional investors
- Potential difficulty in executing large orders
Investor Impact: Existing shareholders may experience difficulty exiting positions due to reduced liquidity. New investors face higher entry barriers and increased risk. The surveillance designation serves as a strong caution signal about potential risks associated with these securities.
Impact Justification
Movement to higher GSM stages significantly impacts trading in these securities, with increased restrictions and surveillance measures affecting liquidity and investor participation