Description

BSE has moved 6 securities to different stages of Graded Surveillance Measure (GSM) framework, with 4 securities moving to Stage II and 2 securities moving to Stage III effective from the specified date.

Summary

BSE has announced the movement of 6 securities into different stages of the Graded Surveillance Measure (GSM) framework. Four securities (Caprolactam Chemicals Ltd, Kiran Print Pack Ltd, Purohit Construction Ltd, and Darjeeling Ropeway Company Ltd) are being moved to GSM Stage II, while two securities (Paos Industries Ltd and Ambassador Intra Holdings Ltd) are being moved to GSM Stage III. The GSM framework is a surveillance mechanism to enhance market integrity and protect investors by identifying securities with unusual price movements or other concerns.

Key Points

  • 4 securities moving to GSM Stage II: Caprolactam Chemicals Ltd (507486), Kiran Print Pack Ltd (531413), Purohit Construction Ltd (538993), and Darjeeling Ropeway Company Ltd (539770)
  • 2 securities moving to GSM Stage III: Paos Industries Ltd (530291) and Ambassador Intra Holdings Ltd (542524)
  • Securities can move to lower GSM stages if included in ESM Framework or IBC Framework
  • GSM Stage III represents higher surveillance level compared to Stage II

Securities Details

Moving to GSM Stage II

  1. Caprolactam Chemicals Ltd - Security Code: 507486, ISIN: INE470N01010
  2. Kiran Print Pack Ltd - Security Code: 531413, ISIN: INE516D01011
  3. Purohit Construction Ltd - Security Code: 538993, ISIN: INE147J01012
  4. Darjeeling Ropeway Company Ltd - Security Code: 539770, ISIN: INE830S01014

Moving to GSM Stage III

  1. Paos Industries Ltd - Security Code: 530291, ISIN: INE791C01012
  2. Ambassador Intra Holdings Ltd - Security Code: 542524, ISIN: INE342U01016

Regulatory Framework

The Graded Surveillance Measure (GSM) is a progressive surveillance framework that places additional requirements on securities based on specific criteria. Higher GSM stages typically involve:

  • Additional margins and trading restrictions
  • Price bands limitations
  • Disclosure requirements for investors
  • Enhanced monitoring by the exchange

Compliance Requirements

  • Investors trading in these securities must comply with enhanced margin requirements applicable to the respective GSM stage
  • Trading members must ensure adequate disclosures to clients regarding GSM applicability
  • Additional due diligence required before trading in these securities

Impact Assessment

The movement of securities to higher GSM stages indicates concerns regarding price volatility, corporate governance, or other risk factors. This can result in:

  • Reduced liquidity due to higher trading costs
  • Increased margins required for trading
  • Potential investor caution leading to lower trading volumes
  • Enhanced scrutiny from regulatory authorities

Investors holding positions in these securities should review their holdings and understand the implications of GSM applicability on their investment strategy.

Impact Justification

Movement of securities to higher GSM stages indicates increased surveillance and trading restrictions, directly impacting investors in these specific securities with additional compliance requirements and potential liquidity constraints.