Description

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

Summary

BSE has announced the movement of 7 securities into various stages of the Graded Surveillance Measure (GSM) framework. Two securities are moving to GSM Stage I, three to Stage II, and two to Stage III. The GSM framework is designed to enhance market surveillance and protect investors by imposing additional monitoring and trading restrictions on securities exhibiting abnormal price movements or other concerning characteristics.

Key Points

  • 7 securities are being moved into different GSM stages effective from the date of this circular
  • GSM Stage I: Southern Latex Ltd. (514454) and Gayatri Bioorganics Ltd. (524564)
  • GSM Stage II: Fine-Line Circuits Ltd. (517264), Ashiana Agro Industries Ltd. (519174), and Mena Mani Industries Limited (531127)
  • GSM Stage III: Ganesh Holdings Ltd. (504397) and South Asian Enterprises Ltd. (526477)
  • Securities marked (#) may move to lower GSM stages if included in ESM Framework
  • Securities marked ($) may move to lower GSM stages if included in IBC Framework
  • Changes are aligned with NSE as indicated by (*) notation

Regulatory Changes

The GSM framework applies progressive surveillance measures based on stage:

  • Higher stages typically involve stricter price bands, lower circuit limits, and increased margin requirements
  • Trading frequency may be reduced (e.g., trade-to-trade settlement)
  • Additional disclosure requirements may apply
  • Securities can move between stages based on compliance and market behavior

Compliance Requirements

  • Market participants must be aware of the GSM stage classification for these securities
  • Brokers should inform clients about enhanced surveillance and associated trading restrictions
  • Investors should review margin requirements which typically increase with higher GSM stages
  • Trading members must ensure compliance with additional surveillance parameters applicable to these securities

Important Dates

  • Effective Date: December 29, 2025 (as per circular issuance date)
  • No specific implementation timeline mentioned; changes typically effective immediately or from next trading session

Impact Assessment

Market Impact: Medium - The movement of 7 securities into GSM stages will result in reduced liquidity and trading flexibility. Higher GSM stages impose stricter price bands and increased margin requirements, which can deter speculative trading.

Investor Impact: Medium - Investors holding these securities will face enhanced trading restrictions, reduced liquidity, and higher margin requirements. Exit opportunities may be limited, and price discovery could be affected.

Operational Impact: Low to Medium - Brokers and trading members need to update systems to reflect new GSM classifications and communicate changes to affected clients. Additional monitoring and compliance overhead applies to these securities.

Impact Justification

Movement into GSM stages imposes trading restrictions and increased surveillance on 7 securities, affecting liquidity and investor access