Description

BSE announces movement of 10 securities into various stages of Graded Surveillance Measure (GSM) framework for enhanced monitoring.

Summary

BSE has announced the movement of 10 securities into various stages of the Graded Surveillance Measure (GSM) framework effective from the date of this circular. The securities are being placed in Stages I through IV based on surveillance parameters. Stage IV represents the highest level of surveillance with most stringent trading restrictions.

Key Points

  • 2 securities moved to GSM Stage I (Welterman International, Khyati Multimedia-Entertainment)
  • 3 securities moved to GSM Stage II (Futuristic Securities, Vintage Securities, Ambassador Intra Holdings)
  • 1 security moved to GSM Stage III (Lynx Machinery & Commercials)
  • 4 securities moved to GSM Stage IV (Bijoy Hans, Procal Electronics India, Capfin India, Aar Shyam India Investment Company)
  • Securities may move to lower GSM stages if included in ESM Framework (#) or IBC Framework ($)
  • Higher GSM stages involve progressively stricter surveillance and trading restrictions

Regulatory Changes

No new regulatory changes introduced. This circular implements existing GSM framework provisions for enhanced surveillance of securities exhibiting abnormal price movements or other surveillance concerns.

Compliance Requirements

  • Trading members must ensure compliance with applicable GSM stage requirements for these securities
  • Additional margin requirements and trading restrictions apply based on GSM stage
  • Stage IV securities face 100% upfront margin and other stringent conditions
  • Investors should be aware of enhanced surveillance status before trading

Important Dates

  • Effective Date: December 30, 2025 (date of circular issuance)
  • Securities will remain in their respective GSM stages until further review or movement

Impact Assessment

Market Impact: Medium - affects trading in 10 securities with varying levels of liquidity constraints. Stage IV securities (4 stocks) will face most significant trading restrictions including 100% upfront margin requirements.

Investor Impact: Investors holding or trading these securities will experience reduced liquidity, higher margin requirements, and increased transaction scrutiny. Stage IV placements are particularly restrictive and may significantly impact short-term trading strategies.

Operational Impact: Trading members must update systems to enforce GSM-specific margin and trading rules for these securities. Enhanced monitoring and reporting requirements apply.

Impact Justification

Affects 10 securities with enhanced surveillance measures including additional trading restrictions. Stage IV securities face most stringent monitoring.