Description

BSE announces movement of 8 securities into various GSM stages, including Silveroak Commercials Ltd moving to Stage 0, T.Spiritual World Ltd to Stage I, and others to Stages II, III, and IV.

Summary

BSE has issued an update on securities moving into different stages under the Graded Surveillance Measure (GSM) framework. Eight securities are transitioning to various GSM stages, with Silveroak Commercials Ltd moving to Stage 0 (marked for IBC Framework inclusion), one security moving to Stage I, three to Stage II, one to Stage III, and two to Stage IV. These movements indicate varying levels of surveillance concerns requiring enhanced monitoring and trading restrictions.

Key Points

  • 8 securities are moving into their respective GSM stages effective from the specified date
  • Silveroak Commercials Ltd (512197) moves to GSM Stage 0 due to inclusion in IBC Framework
  • T.Spiritual World Ltd (532444) moves to GSM Stage I
  • Three securities move to GSM Stage II: Rsc International Ltd, Alan Scott Enterprises Limited, and Easun Capital Markets Limited
  • Aviva Industries Ltd (512109) moves to GSM Stage III
  • Two securities move to GSM Stage IV: Photon Capital Advisors Ltd and Kiran Print-Pack Ltd
  • Securities marked ($) are moving to lower GSM stages due to inclusion in IBC Framework
  • Securities marked (#) would move to lower GSM stages due to inclusion in ESM Framework

Regulatory Changes

The GSM framework applies progressive surveillance measures based on concerns related to price volatility, market rumors, or other market integrity issues. Movement to higher GSM stages results in:

  • Increased margin requirements for trading
  • Reduction in price bands
  • Trade-for-trade settlement with no intraday leverage
  • Additional disclosure requirements
  • Potential restrictions on derivatives trading

Compliance Requirements

  • Trading members must ensure compliance with enhanced margin requirements for securities in GSM stages
  • Investors should be aware of trade-for-trade settlement requirements for higher GSM stage securities
  • Brokers must provide adequate disclosure to clients about GSM stage securities
  • Market participants must adhere to revised price bands applicable to these securities

Important Dates

  • Circular Date: January 28, 2026
  • Effective Date: As per BSE notification (typically next trading day)

Impact Assessment

Trading Impact: High - Securities moving into GSM stages face significant trading restrictions including higher margins, reduced price bands, and trade-for-trade settlement, which substantially reduces liquidity and increases trading costs.

Investor Impact: High - Existing investors in these securities will face reduced liquidity and may need to provide additional margins. New investors face higher entry barriers.

Market Impact: Medium - While only 8 securities are affected, GSM movements signal regulatory concerns and can impact market sentiment toward small-cap and mid-cap segments.

Operational Impact: Medium - Trading members need to update systems for margin calculations, price band enforcement, and settlement mode changes for these securities.

Impact Justification

Movement into GSM stages imposes significant trading restrictions and increased surveillance on affected securities, directly impacting investor trading activities and liquidity