Description

BSE announces movement of two securities into GSM stages: Integrated Capital Services Ltd moving to GSM Stage I and Shri Niwas Leasing And Finance Limited moving to GSM Stage IV.

Summary

BSE has announced changes to the Graded Surveillance Measure (GSM) framework affecting two securities. Integrated Capital Services Ltd (Security Code: 539149, ISIN: INE682B01023) is moving into GSM Stage I, while Shri Niwas Leasing And Finance Limited (Security Code: 538897, ISIN: INE201F01015) is moving into GSM Stage IV. The GSM framework is designed to enhance market surveillance and alert investors about securities exhibiting abnormal price movements or other concerns.

Key Points

  • Two securities are being moved into GSM stages effective from the date of this circular
  • Integrated Capital Services Ltd is being placed under GSM Stage I (initial surveillance stage)
  • Shri Niwas Leasing And Finance Limited is being moved to GSM Stage IV (higher surveillance level)
  • Securities can move to lower GSM stages if included in ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code) frameworks
  • The circular references NSE coordination for aligned surveillance measures

Regulatory Changes

The GSM framework applies graduated surveillance measures based on the stage assigned. Securities in higher GSM stages face increasingly stringent trading restrictions including:

  • Additional disclosure requirements for trades
  • Higher margin requirements for trading
  • Price bands and trading limitations
  • Periodic review for continuation or escalation of surveillance measures

GSM Stage IV represents a significantly elevated level of surveillance compared to Stage I, indicating greater regulatory concerns about the security’s trading patterns or corporate governance.

Compliance Requirements

  • Trading members must ensure compliance with applicable margin requirements for securities under GSM
  • Investors trading in these securities must be aware of the additional surveillance measures and associated restrictions
  • Brokers must provide appropriate risk disclosures to clients trading in GSM securities
  • All market participants must adhere to the specific trading conditions applicable to each GSM stage

Important Dates

  • Effective Date: January 30, 2026 (date of circular issuance)
  • The GSM stage classification becomes applicable immediately upon announcement

Impact Assessment

Market Impact: The placement of securities under GSM stages serves as a warning signal to investors about potential risks. GSM Stage I placement for Integrated Capital Services Ltd indicates initial concerns requiring monitoring, while GSM Stage IV for Shri Niwas Leasing And Finance Limited suggests more serious issues warranting heightened caution.

Trading Impact: Securities under GSM face reduced liquidity due to higher margins and trading restrictions. Stage IV securities typically experience significantly reduced trading volumes and may face additional price bands or trade-for-trade settlement requirements.

Investor Impact: Investors holding or considering these securities should exercise increased due diligence. The GSM classification indicates regulatory concerns about price volatility, corporate governance, or financial health. Existing investors may face difficulty exiting positions due to reduced liquidity, while new investors face higher margin requirements and trading costs.

Impact Justification

Affects two securities with increased surveillance measures. GSM Stage I is relatively low impact while GSM Stage IV indicates higher concern, requiring investor attention for these specific stocks.