Description

BSE notifies movement of 6 securities into various stages of Graded Surveillance Measure (GSM) framework, with 2 securities moving to Stage I and 4 to Stage II.

Summary

BSE has announced the movement of 6 securities into their respective stages under the Graded Surveillance Measure (GSM) framework effective January 1, 2026. Two securities are being moved to GSM Stage I, while four securities are advancing to GSM Stage II, indicating increased surveillance due to market concerns.

Key Points

  • 2 securities moved to GSM Stage I: Kiduja India Ltd. and Gsl Securities Ltd.
  • 4 securities moved to GSM Stage II: Southern Latex Ltd., Inland Printers Ltd., Kachchh Minerals Ltd., and Bcl Enterprises Limited
  • Securities marked with (#) move to lower GSM stages when included in ESM Framework
  • Securities marked with ($) move to lower GSM stages when included in IBC Framework
  • GSM framework imposes additional surveillance measures including price bands, trade-for-trade settlement, and margin requirements

Regulatory Changes

No new regulatory changes. This circular implements the existing GSM framework which applies graded surveillance measures based on predefined criteria such as price volatility, market capitalization, and trading patterns.

Compliance Requirements

  • Trading members must inform clients about the inclusion of these securities in GSM stages
  • Enhanced margins and additional surveillance deposit requirements apply to these securities
  • Trade-for-trade settlement mechanism applicable (no intraday squaring off)
  • Price bands and trading restrictions as per respective GSM stage provisions
  • Investors must place orders only after having sufficient funds/securities in their accounts

Important Dates

  • Effective Date: January 1, 2026 (securities move into respective GSM stages)

Impact Assessment

Trading Impact: Moderate impact on liquidity for affected securities due to trade-for-trade settlement and enhanced margin requirements. Investors holding these stocks will face restrictions on intraday trading.

Investor Impact: Investors in these 6 securities must be aware of enhanced surveillance measures, higher margin requirements, and potential pricing volatility. The move to higher GSM stages signals regulatory concerns about trading patterns.

Market Operations: Trading members need to update their systems to apply appropriate margins and trading restrictions for these securities.

Securities Details

GSM Stage I (2 securities)

  1. Kiduja India Ltd. (Security Code: 507946, ISIN: INE845A01028)
  2. Gsl Securities Ltd. (Security Code: 530469, ISIN: INE721D01017)

GSM Stage II (4 securities)

  1. Southern Latex Ltd. (Security Code: 514454, ISIN: INE410M01018)
  2. Inland Printers Ltd. (Security Code: 530787, ISIN: INE055O01033)
  3. Kachchh Minerals Ltd. (Security Code: 531778, ISIN: INE059E01010)
  4. Bcl Enterprises Limited (Security Code: 539621, ISIN: INE368E01023)

Impact Justification

Routine surveillance action affecting 6 securities with moderate trading implications for investors in these stocks