Description
BSE announces movement of 5 securities into various stages of the Graded Surveillance Measure (GSM) framework for enhanced monitoring.
Summary
BSE has announced the movement of 5 securities into different stages of the Graded Surveillance Measure (GSM) framework. Two securities are moving to Stage I, two to Stage II, and one to Stage III. The GSM framework is designed to enhance market surveillance and protect investor interests by imposing progressive restrictions on securities that exhibit certain risk characteristics.
Key Points
- 5 securities are being moved into various GSM stages
- Santosh Fine-Fab Ltd. (530035) and Nihar Info Global Ltd. (531083) moved to GSM Stage I
- Adarsh Plant Protect Ltd. (526711) and Karnawati Innovation Limited (531671) moved to GSM Stage II
- Starcom Information Technology (531616) moved to GSM Stage III
- Securities marked with (#) move lower in GSM due to ESM Framework inclusion
- Securities marked with ($) move lower in GSM due to IBC Framework inclusion
Securities Details
| Security Code | ISIN | Security Name | GSM Stage |
|---|---|---|---|
| 530035 | INE612D01018 | Santosh Fine-Fab Ltd. | I |
| 531083 | INE876E01033 | Nihar Info Global Ltd. | I |
| 526711 | INE627D01016 | Adarsh Plant Protect Ltd. | II |
| 531671 | INE214D01021 | Karnawati Innovation Limited | II |
| 531616 | INE347I01010 | Starcom Information Technology | III |
Regulatory Changes
The GSM framework applies progressive surveillance measures based on the stage:
- Stage I: Entry level surveillance with basic restrictions
- Stage II: Intermediate surveillance with enhanced monitoring
- Stage III: Higher surveillance with stricter trading conditions
Higher GSM stages typically involve additional disclosure requirements, trade-for-trade settlement, and price bands to protect investors.
Compliance Requirements
- Listed companies in GSM stages must comply with enhanced disclosure norms
- Investors trading in these securities should be aware of applicable restrictions
- Brokers must ensure clients are informed about GSM status of securities
- Trading members must adhere to settlement and margin requirements specific to GSM securities
Important Dates
- Circular Date: January 9, 2026
- Effective Date: As per exchange notification (typically immediate or next trading day)
Impact Assessment
Market Impact: The movement of securities into GSM stages will result in reduced liquidity and trading activity for the affected stocks. Higher stages impose stricter trading conditions including additional margins, price bands, and trade-for-trade settlement, which typically deter speculative trading.
Investor Impact: Existing investors in these securities may face challenges in exiting positions due to reduced liquidity. New investors will face higher entry barriers and margin requirements.
Company Impact: Companies moved to higher GSM stages may experience reputational concerns and reduced investor interest, potentially affecting their ability to raise capital through equity markets.
Impact Justification
Movement of securities into GSM stages affects trading conditions and investor participation for the listed companies, requiring increased scrutiny but limited to 5 securities