Description

Seven securities are being moved to different stages of the Graded Surveillance Measure (GSM) framework, with two moving to Stage I, three to Stage II, and two to Stage III.

Summary

BSE has announced the movement of seven securities into different 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 a surveillance mechanism designed to alert investors about securities exhibiting abnormal price movements or other concerns.

Key Points

  • 7 securities are being moved to different GSM stages
  • 2 securities moving to GSM Stage I: Southern Latex Ltd. (514454) and Gayatri Bioorganics Ltd. (524564)
  • 3 securities moving to GSM Stage II: Fine-Line Circuits Ltd. (517264), Ashiana Agro Industries Ltd. (519174), and Mena Mani Industries Limited (531127)
  • 2 securities moving to GSM Stage III: Ganesh Holdings Ltd. (504397) and South Asian Enterprises Ltd. (526477)
  • Higher GSM stages indicate increased surveillance and stricter trading conditions
  • Securities may move to lower GSM stages if included in ESM or IBC frameworks

Regulatory Changes

No new regulatory changes introduced. This circular implements the existing GSM framework which applies progressive surveillance measures to securities based on market behavior and risk indicators.

Compliance Requirements

  • Investors and market participants should note the GSM stage classification of these securities
  • Trading in these securities will be subject to enhanced surveillance measures corresponding to their GSM stage
  • Brokers must inform clients about the GSM status of these securities before execution of trades
  • Applicable additional surveillance deposit (ASD) and other GSM-specific requirements will apply

Important Dates

  • Effective Date: December 29, 2025 (circular date)

Impact Assessment

Market Impact: Medium - Movement to higher GSM stages typically results in reduced liquidity and increased trading costs due to additional surveillance deposits and other restrictions. Investors in these seven securities will face stricter trading conditions.

Operational Impact: Brokers and trading members need to update their systems to reflect the new GSM classifications and ensure compliance with stage-specific requirements including ASD collection and client disclosures.

Investor Impact: Existing and potential investors in these securities should be aware of enhanced surveillance status, which may indicate concerns about price volatility, market manipulation risk, or other irregular trading patterns. Higher GSM stages may deter participation and affect stock prices.

Impact Justification

Affects trading conditions for seven securities under GSM framework. Movement to higher stages indicates increased surveillance and trading restrictions for these stocks.