Description

Six securities moved to different GSM stages including Ace Men Engg Works Ltd to Stage I, four securities to Stage II, and SJ Corporation Ltd to Stage IV effective February 2, 2026.

Summary

BSE has announced the movement of six securities into higher Graded Surveillance Measure (GSM) stages effective February 2, 2026. The circular identifies one security moving to GSM Stage I, four securities advancing to Stage II, and one security escalating to Stage IV, representing heightened surveillance levels due to market concerns.

Key Points

  • One security moved to GSM Stage I: Ace Men Engg Works Ltd (539661, INE023R01018)
  • Four securities moved to GSM Stage II: Carnation Industries Ltd (530609), Shivamshree Businesses Ltd (538520), Yaan Enterprises Ltd (538521), and Integrated Capital Services Ltd (539149)
  • One security moved to GSM Stage IV: SJ Corporation Ltd (504398, INE312B01027)
  • Securities marked with (#) can move to lower GSM stages if included in ESM Framework
  • Securities marked with ($) can move to lower GSM stages if included in IBC Framework
  • Stage designations may be aligned with NSE as indicated by (*) notation

Regulatory Changes

The GSM framework imposes progressively stringent trading restrictions at each stage:

  • Stage I: Initial surveillance with additional disclosure requirements
  • Stage II: Enhanced surveillance with possible Additional Surveillance Deposit (ASD) and price bands
  • Stage IV: Severe restrictions including 100% upfront margin, no intraday trading, and potential trade-to-trade settlement

Compliance Requirements

  • Trading members must collect appropriate margins as per the GSM stage requirements
  • Investors trading in these securities must comply with enhanced margin and settlement obligations
  • Brokers must ensure clients are aware of the surveillance status and associated restrictions
  • Additional Surveillance Deposit (ASD) may be applicable for Stage II and higher securities

Important Dates

  • Effective Date: February 2, 2026 - GSM stage changes become applicable for all six securities listed

Impact Assessment

The movement of securities into higher GSM stages significantly impacts market liquidity and investor accessibility. Stage II securities face trading restrictions that reduce speculative activity, while SJ Corporation’s movement to Stage IV represents severe concerns requiring maximum surveillance measures including 100% upfront delivery margin and trade-to-trade settlement. Investors holding these securities should expect reduced liquidity, wider bid-ask spreads, and potential difficulty in executing trades. The GSM framework serves as a protective mechanism to curb excessive speculation and ensure orderly price discovery, but also signals heightened regulatory scrutiny of these companies’ fundamentals or corporate governance practices.

Impact Justification

Movement to higher GSM stages indicates increased surveillance and trading restrictions, significantly impacting liquidity and investor access to these securities.