Description

BSE announces movement of 7 securities into different GSM stages, with 6 securities moving to Stage II and 1 security moving to Stage III under the Graded Surveillance Measure framework.

Summary

BSE has issued a circular identifying 7 securities that are being moved into different stages of the Graded Surveillance Measure (GSM) framework. Six securities are moving to GSM Stage II, and one security is moving to GSM Stage III. The GSM framework is designed to enhance market surveillance and protect investor interests by imposing additional restrictions on securities exhibiting abnormal price movements or other concerning characteristics.

Key Points

  • 6 securities moved to GSM Stage II: Softbpo Global Services Ltd., Iykot Hitech Toolroom Ltd., Avi Products India Limited, Charms Industries Ltd., Boston Bio Systems Ltd., and Hari Govind International Ltd.
  • 1 security moved to GSM Stage III: Nikki Global Finance Ltd.
  • Securities in higher GSM stages face stricter trading conditions including reduced price bands and additional margin requirements
  • Movement to GSM stages indicates regulatory concerns about trading patterns or corporate governance issues
  • Securities marked with (#) may move to lower GSM stages due to inclusion in ESM Framework
  • Securities marked with ($) may move to lower GSM stages due to inclusion in IBC Framework

Regulatory Changes

The affected securities will be subject to enhanced surveillance measures corresponding to their respective GSM stages:

GSM Stage II Securities:

  • Security Code 504375 (INE459E01012) - Softbpo Global Services Ltd.
  • Security Code 522245 (INE079L01013) - Iykot Hitech Toolroom Ltd.
  • Security Code 523896 (INE316O01021) - Avi Products India Limited
  • Security Code 531327 (INE442C01012) - Charms Industries Ltd.
  • Security Code 531458 (INE109B01019) - Boston Bio Systems Ltd.
  • Security Code 531971 (INE167F01018) - Hari Govind International Ltd.

GSM Stage III Securities:

  • Security Code 531272 (INE526C01012) - Nikki Global Finance Ltd.

Higher GSM stages typically impose stricter trading conditions including reduced price bands, 100% upfront margin requirements, and periodic call auctions.

Compliance Requirements

  • Investors and brokers must be aware of the enhanced surveillance measures applicable to these securities
  • Trading in these securities will be subject to stage-specific restrictions as per BSE’s GSM framework
  • Market participants should exercise increased caution when trading these securities
  • Additional margin requirements and trading restrictions will apply as per the respective GSM stage guidelines

Important Dates

  • Circular Date: January 22, 2026
  • Effective Date: As per BSE notification (typically effective from the next trading session)

Impact Assessment

Market Impact:

  • Investors holding these securities may experience reduced liquidity and stricter trading conditions
  • Higher margin requirements may discourage speculative trading in these securities
  • Price discovery may be affected due to periodic call auctions in higher GSM stages

Investor Impact:

  • Existing shareholders may find it more difficult to exit positions due to reduced liquidity
  • New investors will face higher entry barriers with increased margin requirements
  • The GSM categorization serves as a regulatory warning signal about potential risks

Operational Impact:

  • Brokers must update their risk management systems to reflect the new GSM classifications
  • Trading terminals and surveillance systems need to be configured for stage-specific restrictions
  • Investors should review their portfolios if holding any of the affected securities

Impact Justification

Affects trading conditions for 7 securities with increased surveillance measures, signaling heightened regulatory scrutiny and potential trading restrictions for investors in these stocks.