Description

BSE announces downward revision of GSM stages for 56 securities, with 29 securities moving from Stage 1 to Stage 0 and 27 securities moving from higher stages to lower stages.

Summary

BSE has announced a downward revision in the Graded Surveillance Measure (GSM) stages for 56 securities. This revision reflects improved performance and reduced surveillance concerns for these securities. The changes include 29 securities moving from Stage 1 to Stage 0 (complete removal from GSM), 21 securities moving from Stage 2 to Stage 1, and 6 securities moving from Stage 3 to Stage 2.

Key Points

  • 29 securities are being moved from GSM Stage 1 to Stage 0 (exiting GSM framework)
  • 21 securities are being downgraded from Stage 2 to Stage 1
  • 6 securities are being downgraded from Stage 3 to Stage 2
  • Securities span across multiple groups including X, XT, Z, ZP, P, B, and T
  • Notable securities include NOIDA TOLL BRIDGE COMPANY LTD. (532481) moving from Stage 1 to Stage 0
  • LCC INFOTECH LTD. (532019) moving from Stage 2 to Stage 1

Regulatory Changes

This circular implements a periodic review of securities under the Graded Surveillance Measure framework. The downward revision of stages indicates that these securities have met the criteria for reduced surveillance requirements. Lower GSM stages typically mean:

  • Reduced additional surveillance deposit (ASD) requirements
  • Lower price-to-price variation margins
  • Improved trading flexibility for market participants
  • Decreased regulatory scrutiny

Compliance Requirements

  • Stock brokers and trading members must note the revised GSM stages for affected securities
  • Trading systems will be updated to reflect the new surveillance stages
  • Margin requirements and ASD will be adjusted according to the new stage classifications
  • Market participants should review their positions in affected securities

Important Dates

  • Circular Date: January 9, 2026
  • The stage revisions are effective as per the circular date

Impact Assessment

Positive Impact:

  • Improved trading conditions for 56 securities with reduced surveillance burden
  • Lower margin requirements for traders and investors in these securities
  • Enhanced market liquidity potential due to reduced trading restrictions
  • Positive signal regarding compliance improvement for affected companies

Market Participants Affected:

  • Investors holding positions in the 56 listed securities
  • Stock brokers managing client portfolios with these securities
  • Risk management systems requiring margin calculation updates

Groups Affected:

  • X Group: 35 securities
  • XT Group: 9 securities
  • Z Group: 3 securities
  • B Group: 2 securities
  • T Group: 1 security
  • ZP Group: 2 securities
  • P Group: 1 security

The downward revision indicates improved market behavior and compliance for these securities, providing relief to market participants.

Impact Justification

Lower revision of GSM stages indicates improved compliance and reduced surveillance concerns for 56 securities, providing trading relief to affected stocks.