Description

BSE notification regarding movement of three securities into different GSM stages under the Graded Surveillance Measure framework.

Summary

BSE has announced the movement of three securities into their respective Graded Surveillance Measure (GSM) stages. Two securities - Starsource Multitrade Limited and Quadrant Televentures Limited - have been moved to GSM Stage I, while Mena Mani Industries Limited has been moved to GSM Stage III.

Key Points

  • Three securities are being placed under enhanced surveillance through the GSM framework
  • Starsource Multitrade Limited (Security Code: 506365, ISIN: INE320M01019) moved to GSM Stage I
  • Quadrant Televentures Limited (Security Code: 511116, ISIN: INE527B01020) moved to GSM Stage I
  • Mena Mani Industries Limited (Security Code: 531127, ISIN: INE148B01033) moved to GSM Stage III
  • Securities may move to lower GSM stages if included in ESM Framework or IBC Framework

Regulatory Changes

The GSM framework imposes progressive restrictions on securities based on concerns related to price movements, volatility, or corporate governance. Movement to higher GSM stages typically results in:

  • Additional margin requirements for trading
  • Trade-for-trade settlement basis
  • Prohibition of derivative contracts
  • Enhanced disclosure requirements

Compliance Requirements

  • Trading members must ensure compliance with GSM stage-specific trading restrictions
  • Investors should be aware of increased margin requirements and settlement obligations
  • No fresh derivative positions can be created in securities under GSM
  • All outstanding positions must be settled on a trade-for-trade basis

Important Dates

  • Effective Date: January 2, 2026

Impact Assessment

The placement of these securities in GSM stages will impact their liquidity and trading activity. Stage I placement (Starsource Multitrade and Quadrant Televentures) involves moderate restrictions, while Stage III placement (Mena Mani Industries) involves more stringent surveillance measures. Investors in these securities will face higher margin requirements and reduced flexibility in trading. The measure is designed to protect investor interests by curbing excessive speculation in securities with concerning characteristics.

Impact Justification

Movement of securities into GSM stages affects trading conditions and liquidity for these specific stocks. Stage I entries are less severe than Stage III, impacting a limited number of securities.