Description

BSE announces movement of 8 securities across GSM (Graded Surveillance Measure) stages I through IV for enhanced monitoring and surveillance.

Summary

BSE has published the list of securities moving into different stages of the Graded Surveillance Measure (GSM) framework. A total of 8 securities are transitioning across GSM stages, with 2 moving to Stage I, 2 to Stage II, 1 to Stage III, and 3 to Stage IV. The GSM framework applies progressive surveillance measures to securities based on specific criteria.

Key Points

  • 2 securities moving to GSM Stage I: Adline Chem Lab Limited and Alan Scott Enterprises Limited
  • 2 securities moving to GSM Stage II: Sungold Capital Ltd. and Minolta Finance Ltd.
  • 1 security moving to GSM Stage III: Caprolactam Chemicals Ltd.
  • 3 securities moving to GSM Stage IV: Softbpo Global Services Ltd., Charms Industries Ltd., and Hari Govind International Ltd.
  • Securities may move to lower GSM stages if included in ESM Framework (#) or IBC Framework ($)
  • Stage classification impacts trading conditions and margin requirements

Affected Securities

GSM Stage I

  1. Adline Chem Lab Limited (524604) - ISIN: INE276T01018
  2. Alan Scott Enterprises Limited (539115) - ISIN: INE273F01022

GSM Stage II

  1. Sungold Capital Ltd. (531433) - ISIN: INE271D01013
  2. Minolta Finance Ltd. (532164) - ISIN: INE514C01026

GSM Stage III

  1. Caprolactam Chemicals Ltd. (507486) - ISIN: INE470N01010

GSM Stage IV

  1. Softbpo Global Services Ltd. (504375) - ISIN: INE459E01012
  2. Charms Industries Ltd. (531327) - ISIN: INE442C01012
  3. Hari Govind International Ltd. (531971) - ISIN: INE167F01018

Regulatory Changes

No new regulatory changes introduced. This circular implements the existing GSM framework which applies progressive surveillance measures based on securities meeting specific criteria related to price volatility, trading patterns, or other market surveillance parameters.

Compliance Requirements

  • Investors and traders must be aware of the GSM stage applicable to these securities
  • Higher GSM stages typically involve stricter surveillance, including increased margin requirements, trading restrictions, or reduced position limits
  • Market participants should review their holdings and positions in these securities
  • Brokers must ensure appropriate risk disclosures to clients trading in GSM securities

Important Dates

  • Circular Date: January 27, 2026
  • Effective Date: As per BSE surveillance framework implementation schedule (not specified in circular)

Impact Assessment

Trading Impact: Securities in higher GSM stages face increased surveillance and may have higher margin requirements, potentially reducing liquidity and trading volumes. Stage IV securities face the most stringent restrictions.

Investor Impact: Existing investors in these securities should monitor their positions closely as GSM classification may affect price discovery and exit opportunities. New investors should be aware of enhanced surveillance conditions.

Market Impact: Limited overall market impact as these are primarily small-cap securities with specific surveillance concerns. The GSM framework helps protect investor interests through enhanced monitoring of securities with abnormal price movements or trading patterns.

Impact Justification

Affects trading conditions for 8 securities with potential increased margin requirements and surveillance restrictions under GSM framework