Description

BSE announces movement of 6 securities into GSM Stages I and II, including Kiduja India Ltd., GSL Securities Ltd., and others as part of surveillance framework.

Summary

BSE has announced the movement of 6 securities into different stages of the Graded Surveillance Measure (GSM) framework effective from the date of this circular. Two securities (Kiduja India Ltd. and GSL Securities Ltd.) are being moved to GSM Stage I, while four securities (Southern Latex Ltd., Inland Printers Ltd., Kachchh Minerals Ltd., and BCL Enterprises Limited) are being moved to GSM Stage II. The GSM framework is designed to alert investors about securities exhibiting abnormal price movements or other concerns.

Key Points

  • 6 securities are being moved into GSM surveillance stages
  • 2 securities moving to GSM Stage I: Kiduja India Ltd. (507946) and GSL Securities Ltd. (530469)
  • 4 securities moving to GSM Stage II: Southern Latex Ltd. (514454), Inland Printers Ltd. (530787), Kachchh Minerals Ltd. (531778), and BCL Enterprises Limited (539621)
  • Securities marked with (#) move to lower GSM stages due to ESM Framework inclusion
  • Securities marked with ($) move to lower GSM stages due to IBC Framework inclusion
  • Movement based on NSE criteria as indicated by (*) notation

Regulatory Changes

The circular implements stage-wise surveillance measures under the GSM framework. Securities in higher GSM stages are subject to:

  • Additional surveillance and monitoring
  • Price bands and circuit filters
  • Trade-for-trade settlement (no intraday trading)
  • Higher margin requirements
  • ASM (Additional Surveillance Measure) periodic call auctions in some stages

Compliance Requirements

  • Trading members must ensure compliance with GSM framework requirements for affected securities
  • Investors should be aware of enhanced surveillance measures including trading restrictions
  • Higher margin requirements will apply to positions in these securities
  • All trades in GSM securities will be settled on a trade-for-trade basis
  • Market participants must adhere to applicable price bands and circuit limits

Important Dates

  • Effective Date: January 1, 2026
  • Implementation: Immediate upon circular issuance

Impact Assessment

Market Impact: The movement of these 6 securities into GSM stages will result in reduced liquidity due to trade-for-trade settlement requirements and higher transaction costs due to increased margin requirements. Investors holding these securities may face difficulty in exiting positions quickly.

Operational Impact: Trading members will need to adjust their risk management systems to account for higher margins and trade-for-trade settlement. Retail investors may face increased costs and reduced flexibility in trading these securities.

Investor Alert: The inclusion of securities in GSM framework serves as a warning signal to investors about potential volatility or other concerns identified by the exchange. Investors should exercise enhanced due diligence before trading in these securities.

Impact Justification

Affects 6 securities with enhanced surveillance measures that impose trading restrictions and higher margins. Movement to GSM stages signals heightened regulatory scrutiny due to price volatility or other concerns.