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 different stages of the Graded Surveillance Measure (GSM) framework. The securities are being moved to GSM Stages I through IV based on surveillance parameters. This action indicates enhanced monitoring and potential trading restrictions on these securities.

Key Points

  • 2 securities moving to GSM Stage I: Welterman International Ltd., Khyati Multimedia-Entertainment
  • 3 securities moving to GSM Stage II: Futuristic Securities Ltd., Vintage Securities Ltd., Ambassador Intra Holdings Limited
  • 1 security moving to GSM Stage III: Lynx Machinery & Commercials Ltd.
  • 4 securities moving to GSM Stage IV: Bijoy Hans Ltd., Procal Electronics India Ltd., Capfin India Limited, Aar Shyam India Investment Company Limited
  • Securities marked with special symbols may be moving to lower GSM stages due to inclusion in ESM or IBC frameworks
  • Movement is aligned with NSE actions

Regulatory Changes

The GSM framework applies progressive surveillance measures as securities move through stages I to IV. Each stage typically involves:

  • Increased disclosure requirements
  • Additional margin requirements for trading
  • Price band restrictions
  • Trade-for-trade settlement (in higher stages)
  • Enhanced reporting obligations

Compliance Requirements

  • Market participants must be aware of applicable trading restrictions for securities in different GSM stages
  • Brokers should inform clients about the GSM status of these securities
  • Investors should note the additional margin requirements and settlement obligations
  • Listed companies must comply with enhanced disclosure norms applicable to their GSM stage

Important Dates

  • Circular Date: December 30, 2025
  • Effective Date: To be implemented as per BSE surveillance guidelines

Impact Assessment

Market Impact: Medium - Affects 10 securities with varying degrees of surveillance measures. Higher GSM stages may reduce liquidity and increase trading costs for these specific stocks.

Investor Impact: Investors holding or trading these securities will face stricter trading conditions, including higher margins and potentially trade-for-trade settlement in higher stages.

Operational Impact: Brokers and trading members need to update their systems to reflect the new GSM classifications and ensure compliance with applicable margin and settlement requirements.

Impact Justification

Movement of securities into GSM stages affects trading conditions for 10 companies, indicating heightened surveillance but limited to specific stocks rather than market-wide impact