Description

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

Summary

BSE has announced the movement of six securities into their respective stages under the Graded Surveillance Measure (GSM) framework. Three securities are moving to Stage I, two to Stage II, and one to Stage III. The GSM framework is designed to alert investors about securities that display abnormal price movements or other irregularities requiring enhanced surveillance.

Key Points

  • Three securities moving to GSM Stage I: Multipurpose Trading & Agencies (504356), Galaxy Agrico Exports Ltd. (531911), and Hindustan Fluorocarbons Ltd. (524013)
  • Two securities moving to GSM Stage II: Krishna Filament Industries Limited (500248) and Sunraj Diamond Exports Ltd. (523425)
  • One security moving to GSM Stage III: Swadha Nature Limited (531039)
  • Securities can move to lower GSM stages if included in ESM Framework (marked #) or IBC Framework (marked $)
  • Coordination with NSE on surveillance measures

Affected Securities

Stage I:

  • Multipurpose Trading & Agencies (ISIN: INE017P01014, Code: 504356)
  • Galaxy Agrico Exports Ltd. (ISIN: INE803L01016, Code: 531911)
  • Hindustan Fluorocarbons Ltd. (ISIN: INE806J01013, Code: 524013)

Stage II:

  • Krishna Filament Industries Limited (ISIN: INE073A01019, Code: 500248)
  • Sunraj Diamond Exports Ltd. (ISIN: INE459D01014, Code: 523425)

Stage III:

  • Swadha Nature Limited (ISIN: INE0P4R01017, Code: 531039)

Regulatory Framework

The GSM framework is a progressive surveillance mechanism where:

  • Stage I represents initial surveillance level
  • Stage II indicates heightened monitoring
  • Stage III represents the most stringent surveillance measures
  • Securities may move to lower GSM stages if they enter ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code) frameworks

Compliance Requirements

  • Investors should exercise caution while trading in these securities
  • Market participants must be aware of the increased surveillance and potential trading restrictions
  • Trading members should ensure clients are informed about the GSM status of these securities

Important Dates

  • Circular Date: December 18, 2025
  • Effective date for GSM stage movement to be as per exchange notifications

Impact Assessment

Market Impact: Medium - Movement into GSM stages typically results in additional margin requirements, periodic call auctions, and reduced trading flexibility. Stage III securities face the most stringent restrictions.

Investor Impact: Investors holding these securities will face higher margins, reduced liquidity, and increased trading costs. The surveillance measures aim to protect investors from volatility and potential manipulation.

Operational Impact: Trading members must update their systems to reflect the new GSM classifications and ensure appropriate margin collection and client disclosures.

Impact Justification

Routine GSM framework movement affecting six securities with progressively stringent surveillance measures based on stage assignment