Description

BSE announces movement of 13 securities across GSM Stages I through IV under the Graded Surveillance Measure framework effective from the specified date.

Summary

BSE has announced the movement of 13 securities into various stages of the Graded Surveillance Measure (GSM) framework. The securities are being moved across GSM Stages I, II, III, and IV, which impose progressively stricter trading restrictions and surveillance measures. This action is part of BSE’s ongoing market surveillance activities to protect investor interests and maintain market integrity.

Key Points

  • 3 securities moving to GSM Stage I: Caprolactam Chemicals Ltd., MFS Intercorp Ltd., and Photoquip India Ltd.
  • 2 securities moving to GSM Stage II: Peoples Investments Ltd. and Mayur Floorings Ltd.
  • 3 securities moving to GSM Stage III: Avasara Finance Limited, Pioneer Agro Extracts Ltd., and Popees Cares Limited
  • 5 securities moving to GSM Stage IV: Harig Crankshafts Ltd., SW Investments Ltd, Pasupati Fincap Ltd., Shah Foods Ltd., and Ace Edutrend Ltd.
  • Securities marked with special symbols (#, $) may move to lower GSM stages due to inclusion in ESM or IBC frameworks
  • Some classifications are aligned with NSE (marked with *)

Regulatory Changes

The Graded Surveillance Measure (GSM) framework applies progressive surveillance stages with increasing restrictions:

  • Stage I: Initial surveillance with basic monitoring
  • Stage II: Enhanced monitoring with additional restrictions
  • Stage III: Stricter surveillance with more stringent trading conditions
  • Stage IV: Highest level of surveillance with maximum trading restrictions

Movement to higher GSM stages typically results in additional margin requirements, trade-for-trade settlement, and other preventive measures.

Compliance Requirements

  • Trading members must ensure compliance with the applicable GSM stage requirements for each security
  • Additional margin and settlement obligations apply based on GSM stage
  • Investors should be aware of enhanced surveillance measures and potential trading restrictions
  • Brokers must communicate GSM status to clients trading in these securities

Important Dates

  • Circular Date: January 13, 2026
  • Effective Date: As per BSE notification (typically the next trading session after circular issuance)

Impact Assessment

Market Impact: Medium - The movement of these securities into higher GSM stages will result in increased trading restrictions, potentially reducing liquidity and trading volumes in these stocks.

Investor Impact: Investors holding or trading these securities will face stricter margin requirements and settlement obligations. Stage IV securities face the most significant restrictions, which may affect price discovery and market participation.

Compliance Impact: Trading members must update their systems and risk management processes to reflect the new GSM classifications and ensure appropriate surveillance measures are applied.

Impact Justification

Affects 13 securities with enhanced surveillance measures that may impact trading activity and investor participation in these stocks