Description

BSE circular announcing 13 securities moving into various stages of Graded Surveillance Measure (GSM) framework with 9 securities moving to Stage I, 3 to Stage II, and 1 to Stage III.

Summary

BSE has announced the movement of 13 securities into various stages of the Graded Surveillance Measure (GSM) framework. Nine securities are moving to Stage I, three securities to Stage II, and one security to Stage III. The GSM framework is designed to alert investors about securities exhibiting abnormal price movements and protect market integrity through enhanced surveillance.

Key Points

  • 9 securities moving to GSM Stage I: Triliance Polymers Ltd, RSC International Ltd, Manraj Housing Finance Ltd, Polycon International Ltd, Hari Govind International Ltd, Mega Fin India Ltd, Simplex Mills Company Ltd, Yaan Enterprises Ltd, and Shashank Traders Ltd
  • 3 securities moving to GSM Stage II: Santosh Fine Fab Ltd, Binny Mills Ltd, and LCC Infotech Ltd (as per NSE)
  • 1 security moving to GSM Stage III: Krishna Filament Industries Ltd
  • Securities may move to lower GSM stages if included in ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code) frameworks

Regulatory Changes

No new regulatory changes introduced. This circular implements the existing GSM framework by moving securities between surveillance stages based on their trading patterns and compliance status.

Compliance Requirements

  • Trading members must comply with the enhanced surveillance requirements applicable to each GSM stage
  • Investors should be aware of additional restrictions and disclosures applicable to securities under GSM
  • Higher GSM stages typically involve trade-to-trade settlement, reduced price bands, and 100% upfront margin requirements
  • Members must ensure proper risk disclosures to clients trading in these securities

Important Dates

  • Circular Date: January 12, 2026
  • Effective Date: Not explicitly mentioned in the content provided, typically effective immediately or from next trading session

Impact Assessment

Market Impact: Medium - The movement of 13 securities into various GSM stages will result in reduced liquidity, restricted trading activity, and increased scrutiny on these stocks. Higher surveillance stages typically lead to reduced investor participation due to stricter margin requirements and settlement obligations.

Operational Impact: Trading members will need to ensure compliance with stage-specific requirements including enhanced margins, trade-to-trade settlement mechanisms, and client disclosures. The securities moving to higher stages (Stage II and III) will face more stringent restrictions that may significantly impact their trading volumes and price discovery mechanisms.

Investor Impact: Investors holding or trading these securities should be aware of increased risks, reduced liquidity, and potential difficulty in exiting positions. The GSM classification serves as a warning signal for abnormal price movements or concerns about the security’s fundamentals.

Impact Justification

Affects 13 securities with enhanced surveillance measures that will impact trading activity and investor participation in these stocks through additional restrictions and monitoring