Description

BSE announces movement of 7 securities into various stages of Graded Surveillance Measure (GSM) framework for enhanced monitoring.

Summary

BSE has issued a circular identifying 7 securities that are moving into different stages of the Graded Surveillance Measure (GSM) framework. The securities are moving into Stage II, Stage III, and Stage IV, with each stage representing progressively stricter surveillance and trading restrictions. This movement is part of BSE’s ongoing market surveillance activities to monitor securities exhibiting abnormal price movements or other concerning characteristics.

Key Points

  • 5 securities moving to GSM Stage II: Lynx Machinery & Commercials Ltd (505320), Oswal Yarns Ltd (514460), South Asian Enterprises Ltd (526477), Aris International Ltd (531677), and Fraser And Company Limited (539032)
  • 1 security moving to GSM Stage III: Oswal Leasing Ltd (509099)
  • 1 security moving to GSM Stage IV: Adjia Technologies Limited (543269)
  • Securities can move to lower GSM stages if included in ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code) frameworks
  • GSM framework is designed to alert investors about securities showing abnormal price movements

Regulatory Changes

No new regulatory changes introduced. This circular represents the periodic implementation of existing GSM framework rules where securities are classified into different surveillance stages based on predefined criteria including price volatility, trading volumes, and other market parameters.

Compliance Requirements

  • Trading members must be aware of the GSM stage classification of these securities
  • Additional disclosure requirements and Price Discovery Mechanism (PDM) sessions may apply depending on GSM stage
  • Investors trading in these securities should be aware of enhanced surveillance measures
  • Higher GSM stages typically involve additional warnings, reduced price bands, and mandatory settlement obligations

Important Dates

  • Effective Date: December 17, 2025
  • Circular Issue Date: December 17, 2025

Impact Assessment

Market Impact: Medium - Movement into higher GSM stages typically results in reduced liquidity and increased trading restrictions. Stage IV classification for Adjia Technologies indicates severe surveillance concerns.

Investor Impact: Investors holding or trading these securities will face stricter trading conditions including potential reduction in price bands, mandatory delivery-based trading, and enhanced margin requirements at higher stages.

Operational Impact: Trading members need to update their systems to reflect the new GSM classifications and ensure compliance with stage-specific requirements including additional client disclosures and risk warnings.

Impact Justification

Affects 7 securities moving into stricter surveillance stages, indicating increased monitoring requirements and trading restrictions for specific stocks