Description

Five securities are moving to various GSM stages, with Jayatma Industries and Filmcity Media entering Stage I, T Spiritual World moving to Stage II, and Shri Niwas Leasing and Alan Scott Enterprises advancing to Stage III.

Summary

BSE has updated the Graded Surveillance Measure (GSM) list, moving five securities into their respective GSM stages effective from the date of this circular. The GSM framework is designed to alert investors about securities that exhibit abnormal price movements or other concerns, with progressively stringent surveillance measures across four stages.

Key Points

  • Two securities moving to GSM Stage I: Jayatma Industries Ltd (531323) and Filmcity Media Ltd (531486)
  • One security moving to GSM Stage II: T Spiritual World Ltd (532444)
  • Two securities moving to GSM Stage III: Shri Niwas Leasing And Finance Ltd (538897) and Alan Scott Enterprises Ltd (539115)
  • Securities can move to lower GSM stages if included in ESM Framework (marked #) or IBC Framework (marked $)
  • Classification aligned with NSE standards

Regulatory Changes

The affected securities will face stage-specific restrictions under the GSM framework:

  • Stage I: Additional disclosure requirements and periodic reporting
  • Stage II: Trade-for-trade settlement with 100% margin, no intraday trading
  • Stage III: Further restrictions on trading including reduced price bands and additional margin requirements

Securities may be removed from GSM if they meet exit criteria or may move to lower stages if included in other surveillance frameworks (ESM or IBC).

Compliance Requirements

  • Investors: Must comply with stage-specific trading restrictions including margin requirements and settlement obligations
  • Trading Members: Should ensure clients are aware of GSM status and associated trading limitations
  • Listed Companies: Must address underlying concerns that led to GSM inclusion to facilitate eventual exit from surveillance

Important Dates

  • Effective Date: January 29, 2026 (date of circular issuance)
  • Securities will remain in their respective GSM stages until exit criteria are met or further review by the exchange

Impact Assessment

Trading Impact: Significant reduction in liquidity for affected securities, particularly those in Stages II and III where trade-for-trade settlement and 100% margin requirements apply. Intraday trading is eliminated, affecting day traders and speculators.

Investor Impact: Higher capital requirements due to margin obligations, longer settlement cycles, and limited exit opportunities. Existing investors may face difficulty unwinding positions.

Price Impact: GSM inclusion often leads to negative price movement due to reduced investor participation and stigma associated with surveillance measures.

Market Integrity: The framework serves as an early warning system for investors about securities with unusual characteristics, promoting market transparency and investor protection.

Impact Justification

GSM placement significantly restricts trading and indicates regulatory concerns about these securities, directly impacting investor ability to trade and price discovery