Description

BSE announces movement of 6 securities into various stages of Graded Surveillance Measure (GSM) framework effective December 18, 2025.

Summary

BSE has issued a circular detailing the movement of 6 securities into various stages of the Graded Surveillance Measure (GSM) framework. The GSM is a surveillance mechanism to enhance market integrity by identifying securities exhibiting abnormal price movements or other unusual trading patterns. Three securities are moving to GSM Stage I, two to Stage II, and one to Stage III.

Key Points

  • 6 securities are being placed under enhanced surveillance under the GSM framework
  • 3 securities moved to GSM Stage I: Multipurpose Trading & Agencies (504356), Galaxy Agrico Exports Ltd. (531911), and Hindustan Fluorocarbons Ltd. (524013)
  • 2 securities moved to GSM Stage II: Krishna Filament Industries Limited (500248) and Sunraj Diamond Exports Ltd. (523425)
  • 1 security moved to GSM Stage III: Swadha Nature Limited (531039)
  • Securities may move to lower GSM stages if included in ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code) frameworks

Regulatory Changes

The affected securities will be subject to progressive surveillance measures based on their GSM stage:

  • Stage I: Basic surveillance with monitoring of price movements and trading patterns
  • Stage II: Enhanced surveillance with stricter monitoring parameters
  • Stage III: Highest level of surveillance with significant trading restrictions

Higher GSM stages typically involve reduced price bands, additional margins, and other restrictions to curb speculative trading.

Compliance Requirements

  • Trading members must ensure compliance with enhanced surveillance requirements for these securities
  • Investors should be aware of the additional restrictions and margins applicable to these securities
  • Market participants must adhere to the specific trading conditions imposed under each GSM stage
  • Brokers should inform clients about the surveillance status and associated trading limitations

Important Dates

  • Effective Date: December 18, 2025
  • The surveillance measures are applicable immediately from the date of the circular

Impact Assessment

Market Impact: High - The placement of securities in GSM stages significantly impacts their tradability and liquidity. Higher stages impose stricter trading conditions that may deter speculative activity but also reduce overall market participation.

Investor Impact: Investors holding these securities will face additional trading restrictions, higher margin requirements, and potential liquidity constraints. The surveillance designation may also impact investor sentiment and price discovery.

Operational Impact: Trading members must update their systems to ensure compliance with GSM-specific requirements including margin collection, price band restrictions, and monitoring obligations for these securities.

Impact Justification

High surveillance measures significantly restrict trading in affected securities, impacting liquidity and investor participation