Graded Surveillance Measure (GSM) - Securities Moving to Different GSM Stages

Description

BSE announces movement of four securities into various stages of the Graded Surveillance Measure framework, including Carnation Industries, Filmcity Media, SJ Corporation, and Nagarjuna Agri Tech.

Summary

BSE has announced the movement of four securities into different stages of the Graded Surveillance Measure (GSM) framework effective February 1, 2026. The GSM framework is designed to alert investors about securities exhibiting abnormal price movements and encourage them to exercise additional due diligence. Carnation Industries moves to Stage I, Filmcity Media moves to Stage II, while SJ Corporation and Nagarjuna Agri Tech move to Stage III.

Key Points

• Four securities are being moved to different GSM stages
• Carnation Industries Ltd. (530609) moves to GSM Stage I
• Filmcity Media Ltd. (531486) moves to GSM Stage II
• SJ Corporation Ltd. (504398) moves to GSM Stage III
• Nagarjuna Agri Tech Ltd. (531832) moves to GSM Stage III
• Securities can move to lower GSM stages if included in ESM or IBC frameworks

Regulatory Changes

The GSM framework applies progressive surveillance measures based on stage:

• Stage I: Initial surveillance with enhanced monitoring
• Stage II: Increased surveillance with additional disclosure requirements
• Stage III: Highest level of surveillance with stricter trading restrictions

Securities may be moved to lower GSM stages if they are included in Enhanced Surveillance Measure (ESM) or Insolvency and Bankruptcy Code (IBC) frameworks.

Compliance Requirements

• Investors must exercise additional due diligence before trading in these securities
• Trading members should inform clients about the GSM status of these securities
• Enhanced disclosure and monitoring requirements apply to these securities
• Stricter price bands and trading restrictions may apply depending on GSM stage

Important Dates

• Effective Date: February 1, 2026

Impact Assessment

Market Impact: The movement of securities to different GSM stages will result in increased scrutiny and potentially reduced liquidity. Stage III securities (SJ Corporation and Nagarjuna Agri Tech) will face the most stringent restrictions, which may significantly impact trading volumes and investor participation.

Investor Impact: Investors holding or planning to trade these securities should be aware of enhanced surveillance measures, potential price bands, and additional margin requirements. The GSM classification serves as a warning signal for investors to conduct thorough due diligence.

Operational Impact: Trading members must update their systems to reflect the new GSM stages and ensure appropriate risk management measures are in place for transactions in these securities.

Securities Details

Impact Justification

Movement to GSM stages affects trading conditions for four securities, impacting their liquidity and trading parameters with increased surveillance measures