Description

BSE announces movement of 13 securities into various stages of the Graded Surveillance Measure (GSM) framework, affecting companies across Stages I through IV.

Summary

BSE has announced the movement of 13 securities into various stages of the Graded Surveillance Measure (GSM) framework. Three securities are moving to Stage I, two to Stage II, three to Stage III, and five to Stage IV. The GSM framework is designed to alert investors about securities that have witnessed abnormal price rise and help them make informed decisions.

Key Points

  • 13 securities are being moved into different GSM stages
  • Stage I entries: Caprolactam Chemicals Ltd., MFS Intercorp Ltd., Photoquip India Ltd.
  • Stage II entries: Peoples Investments Ltd., Mayur Floorings Ltd.
  • Stage III entries: Avasara Finance Limited, Pioneer Agro Extracts Ltd., Popees Cares Limited
  • Stage IV entries: Harig Crankshafts Ltd., SW Investments Ltd, Pasupati Fincap Ltd., Shah Foods Ltd., Ace Edutrend Ltd.
  • Securities can move to lower GSM stages if included in ESM or IBC Framework

Regulatory Changes

No new regulatory changes are introduced. This circular implements the existing GSM framework which involves progressive surveillance measures across four stages based on price movements and trading patterns.

Compliance Requirements

  • Trading members and investors should be aware of securities under GSM surveillance
  • Enhanced due diligence required when trading these securities
  • Investors should exercise caution and be aware of increased risk associated with these securities
  • Trading in these securities may be subject to additional restrictions as per GSM stage requirements

Important Dates

  • Effective Date: January 13, 2026
  • The movement into respective GSM stages is applicable from this date

Impact Assessment

Market Impact: High - Movement into GSM stages signals increased surveillance and potential trading restrictions, which may affect liquidity and investor confidence in these 13 securities.

Investor Impact: Investors holding or planning to trade these securities should be aware of the heightened risk profile and potential for additional surveillance measures or trading restrictions.

Operational Impact: Trading members need to ensure proper disclosures and risk warnings are provided to clients regarding these securities. Higher GSM stages (III and IV) typically involve more stringent trading restrictions and margin requirements.

Impact Justification

Movement into GSM stages indicates increased surveillance due to price volatility or other concerns, directly impacting trading and investor decisions for 13 securities