Graded Surveillance Measure (GSM) - Securities Moving to Different GSM Stages

Description

BSE announces the movement of 5 securities into their respective GSM stages, ranging from Stage I to Stage IV, effective from the specified date.

Summary

BSE has announced the movement of 5 securities into different stages of the Graded Surveillance Measure (GSM) framework. The securities are being moved to stages ranging from Stage I (least restrictive) to Stage IV (most restrictive) based on surveillance parameters. The circular also notes that some securities may move to lower GSM stages if they are included in the ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code) frameworks.

Key Points

• 5 securities are being moved to different GSM stages
• Karnavati Finance Ltd (538928) moved to GSM Stage I
• Rajasthan Tube Manufacturing Company Ltd (530253) and GSL Securities Ltd (530469) moved to GSM Stage II
• Aris International Ltd (531677) moved to GSM Stage III
• Gayatri Projects Ltd (532767) moved to GSM Stage IV
• 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

Regulatory Changes

The GSM framework continues to be applied as a surveillance mechanism for securities exhibiting abnormal price movements or other concerns. The framework operates in progressive stages (I through IV) with increasing restrictions at higher stages. Securities can move between stages based on their trading behavior and compliance status.

Compliance Requirements

• Market participants should be aware of the GSM stage applicable to these securities
• Trading in these securities will be subject to GSM stage-specific restrictions and surveillance measures
• Investors and traders should exercise appropriate caution when dealing with securities under GSM
• Brokers must ensure compliance with the additional requirements applicable to each GSM stage

Important Dates

• Effective Date: January 6, 2026

Impact Assessment

The movement of securities through GSM stages directly impacts trading conditions for the affected stocks. Higher GSM stages typically involve stricter surveillance, potential trading restrictions, and additional disclosure requirements. Stage IV placement (Gayatri Projects Ltd) indicates the highest level of concern and most restrictive trading conditions. Investors in these securities should be aware of increased volatility risks and potential liquidity constraints. The ability for securities to move to lower GSM stages when included in ESM or IBC frameworks provides flexibility in the surveillance mechanism.

Affected Securities Details

Impact Justification

Movement of securities through GSM stages indicates increased surveillance due to price volatility or other concerns, affecting trading conditions for these specific stocks