Description

Six securities are being moved to higher GSM stages under BSE's surveillance framework, with four companies moving to Stage II and two to Stage III.

Summary

BSE has announced the movement of six securities into higher stages of the Graded Surveillance Measure (GSM) framework. Four securities are being moved to GSM Stage II, and two securities are being moved to GSM Stage III. This surveillance action is designed to alert investors about securities exhibiting abnormal price movements or other concerns requiring enhanced monitoring.

Key Points

  • Four securities moving to GSM Stage II: Caprolactam Chemicals Ltd, Kiran Print Pack Ltd, Purohit Construction Ltd, and Darjeeling Ropeway Company Ltd
  • Two securities moving to GSM Stage III: Paos Industries Ltd and Ambassador Intra Holdings Ltd
  • Securities marked (#) may move to lower GSM stages due to inclusion in ESM Framework
  • Securities marked ($) may move to lower GSM stages due to inclusion in IBC Framework
  • Alignment note indicates coordination with NSE’s surveillance measures

Regulatory Changes

This circular implements BSE’s Graded Surveillance Measure framework, which applies progressive surveillance stages to securities based on various criteria including price movements, trading patterns, and corporate compliance issues. Higher GSM stages typically come with additional trading restrictions such as trade-for-trade settlement, reduced price bands, and periodic call auctions.

Compliance Requirements

  • Trading members must inform their clients about the GSM status of these securities
  • Investors should be aware of enhanced surveillance and potential trading restrictions
  • These securities will be subject to stage-specific trading conditions as per GSM framework
  • Market participants must comply with any additional margins or settlement requirements applicable to GSM securities

Important Dates

  • Effective Date: January 16, 2026
  • The stage movements will be applicable from the date of this circular

Impact Assessment

The movement to higher GSM stages indicates regulatory concerns about these securities and will likely impact their liquidity and trading activity. Stage II and Stage III classifications typically involve stricter trading conditions including mandatory trade-for-trade settlement, which can significantly reduce speculative activity. Investors holding these securities should expect reduced liquidity and potential difficulty in exiting positions. The surveillance action serves as a cautionary measure to protect retail investors from potential risks associated with abnormal price movements or corporate governance issues.

Impact Justification

Movement to higher GSM stages indicates increased surveillance concerns and may result in trading restrictions. Affects six securities with potential liquidity and investor sentiment impact.