Description
BSE announces movement of 35 securities across GSM stages I to IV under the Graded Surveillance Measure framework, effective from the date of circular.
Summary
BSE has announced the movement of 35 securities into various stages of the Graded Surveillance Measure (GSM) framework. The securities are being moved to GSM Stages I through IV, with 2 securities moving to Stage I, 2 to Stage II, 3 to Stage III, and 28 to Stage IV. The GSM framework is designed to enhance market surveillance and investor protection by imposing additional monitoring and trading restrictions on securities that exhibit abnormal price movements or other concerns.
Key Points
- 2 securities moving to GSM Stage I: Amit International Ltd, others
- 2 securities moving to GSM Stage II: KLG Capital Services Ltd, Swadha Nature Ltd
- 3 securities moving to GSM Stage III: N2N Technologies Ltd, Sarda Proteins Ltd, Advik Laboratories Ltd
- 28 securities moving to GSM Stage IV: Including Rama Petrochemicals Ltd, Mipco Seamless Rings Gujarat Ltd, Premium Capital Market & Investments Ltd, and 25 others
- Securities may move to lower GSM stages if included in ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code) frameworks
- One security (Univa Foods Ltd) marked as per NSE classification
Regulatory Changes
The GSM framework applies progressive surveillance measures across four stages:
- Stage I: Initial surveillance with 100% margin requirement
- Stage II: Enhanced surveillance with additional restrictions
- Stage III: Further tightened surveillance measures
- Stage IV: Highest level of surveillance with strictest trading restrictions including additional surveillance deposit (ASD), reduced price bands, and periodic call auctions
Securities can move between stages based on their trading behavior and compliance with regulatory requirements.
Compliance Requirements
- Trading members must ensure compliance with applicable margin requirements for securities in respective GSM stages
- Stage IV securities require additional surveillance deposit and face trade-for-trade settlement
- Investors should exercise caution while trading in GSM securities and understand the associated risks
- Brokers must inform clients about GSM classification and associated restrictions
- Position limits and exposure limits apply as per GSM stage requirements
Important Dates
- Effective Date: December 16, 2025 (date of circular issuance)
- Securities will be subject to GSM provisions from the effective date
Impact Assessment
Market Impact: High - The movement of 35 securities, particularly 28 into Stage IV, indicates significant surveillance concerns. Stage IV restrictions severely limit liquidity and increase transaction costs through higher margins and trading restrictions.
Investor Impact: Investors holding these securities will face:
- Reduced liquidity due to stricter trading norms
- Higher margin requirements (up to 100% in cash)
- Limited ability to take fresh positions
- Potential difficulty in exiting positions
Operational Impact: Trading members must update their systems to reflect new GSM classifications, implement margin collection mechanisms, and ensure client communication about increased risks and restrictions.
Complete List of Affected Securities
Stage I (2 securities)
- Amit International Ltd (531300)
Stage II (2 securities)
- KLG Capital Services Ltd (530771)
- Swadha Nature Ltd (531039)
Stage III (3 securities)
- N2N Technologies Ltd (512279)
- Sarda Proteins Ltd (519242)
- Advik Laboratories Ltd (531686)
Stage IV (28 securities)
- Rama Petrochemicals Ltd (500358)
- Mipco Seamless Rings Gujarat Ltd (505797)
- Sashwat Technocrats Ltd (506313)
- Premium Capital Market & Investments Ltd (511660)
- Capricorn Systems Global Solutions Ltd (512169)
- I-Power Solutions India Ltd (512405)
- Grand Foundry Ltd (513343)
- P.M. Telelinnks Ltd (513403)
- Clenon Enterprises Ltd (517564)
- Source Industries (India) Ltd (521036)
- TMT India Ltd (522171)
- Revati Media Ltd (524504)
- Span Divergent Ltd (524727)
- Indo Credit Capital Ltd (526887)
- Harmony Capital Service Ltd (530055)
- Oscar Global Ltd (530173)
- Shamrock Industrial Company Ltd (531240)
- Alchemist Corporation Ltd (531409)
- Omkar Overseas Ltd (531496)
- Mahan Industries Ltd (531515)
- BJ Duplex Boards Ltd (531647)
- CISTRO Telelink Ltd (531775)
- Tacent Projects Ltd (531887)
- G-Tech Info-Training Ltd (532139)
- Omkar Pharmachem Ltd (532167)
- Baron Infotech Ltd (532336)
- Fourth Generation Information Systems Ltd (532403)
- Jyotirgamya Enterprises Ltd (539246)
- Univa Foods Ltd (526683)*
*As per NSE classification
Impact Justification
High ranking due to significant number of securities (35) being placed under enhanced surveillance across multiple GSM stages, indicating potential concerns about price volatility, market integrity, or compliance issues. Stage IV restrictions include additional paid-up margins and trading restrictions.