Graded Surveillance Measure (GSM) - Securities Moving to Different GSM Stages

Description

BSE announces movement of 10 securities into various stages (I to IV) of the Graded Surveillance Measure framework effective January 21, 2026.

Summary

BSE has announced the movement of 10 securities into various stages of the Graded Surveillance Measure (GSM) framework. The GSM is designed to alert investors about securities that have witnessed abnormal price movements or display characteristics that warrant enhanced surveillance. Five securities are moving to Stage I, three to Stage II, one to Stage III, and one to Stage IV.

Key Points

• 10 securities are being placed under different GSM stages
• Stage I: 5 securities (Softbpo Global Services, Ganon Products, Auto Pins India, Geetanjali Credit and Capital, Sailani Tours N Travels)
• Stage II: 3 securities (Aviva Industries, Nikki Global Finance, Jindal Leasefin)
• Stage III: 1 security (Futuristic Securities)
• Stage IV: 1 security (Jpt Securities)
• Securities may move to lower GSM stages if included in ESM or IBC frameworks
• Higher GSM stages indicate increased surveillance and trading restrictions

Regulatory Changes

No new regulatory changes introduced. This circular implements the existing GSM framework which applies progressive surveillance measures based on security characteristics and trading patterns.

Compliance Requirements

• Investors should be aware of enhanced surveillance on these securities
• Trading members must ensure compliance with GSM-specific trading requirements
• Higher GSM stages may involve additional margin requirements and trade-for-trade settlement
• Market participants should exercise caution when trading these securities

Important Dates

• Effective Date: January 21, 2026
• Securities will be subject to their respective GSM stage restrictions from this date

Impact Assessment

Trading Impact: Securities in higher GSM stages face increased trading restrictions including higher margins, reduced price bands, and potential trade-for-trade settlement. This typically results in reduced liquidity and higher transaction costs.

Investor Impact: Existing holders of these securities may experience reduced liquidity when attempting to exit positions. New investors are cautioned about the heightened risk profile of these securities.

Market Impact: Limited broader market impact as these are primarily small-cap securities with lower trading volumes. The GSM framework serves as an investor protection mechanism.

Securities Affected

Impact Justification

Affects 10 securities with enhanced surveillance measures; important for investors holding these stocks but limited broader market impact