GSM Framework - Securities Moving to Different Surveillance Stages

Description

Six securities have been moved to different stages under the Graded Surveillance Measure (GSM) framework, with movements to Stages I, II, and IV.

Summary

BSE has announced the movement of six securities into their respective Graded Surveillance Measure (GSM) stages. The securities are being placed under enhanced surveillance with one security moving to Stage I, four securities to Stage II, and one security to Stage IV, effective from the specified date.

Key Points

• Total of 6 securities affected by GSM stage movements
• Ace Men Engg Works Ltd (539661) moved to GSM Stage I
• Four securities moved to GSM Stage II: Carnation Industries Ltd, Shivamshree Businesses Ltd, Yaan Enterprises Ltd, and Integrated Capital Services Ltd
• SJ Corporation Ltd (504398) moved to GSM Stage IV (highest surveillance level among those listed)
• Securities may move to lower GSM stages if included in ESM Framework (#) or IBC Framework ($)

Regulatory Changes

The GSM framework applies progressive surveillance measures based on stage:

• Stage I: Initial surveillance with basic restrictions
• Stage II: Increased surveillance with additional trading restrictions
• Stage IV: Stringent surveillance measures with significant trading limitations

Securities marked with special notations may be subject to framework adjustments based on ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code) applicability.

Compliance Requirements

• Investors and trading members must note the enhanced surveillance status of these securities
• Trading in these securities will be subject to GSM-specific restrictions applicable to their respective stages
• Market participants should review GSM framework guidelines for stage-specific trading conditions
• Enhanced disclosure and reporting requirements may apply for positions in these securities

Important Dates

• Circular Date: February 2, 2026
• Effective Date: As per BSE notification (refer to circular for specific implementation date)

Impact Assessment

Market Impact: Medium - Six securities face enhanced surveillance with varying degrees of trading restrictions based on their GSM stage placement.

Liquidity Impact: Securities in higher GSM stages (Stage IV) will experience more severe liquidity constraints compared to lower stages.

Investor Impact: Existing holders and potential investors should be aware of increased margin requirements, price bands, and other restrictions applicable under the GSM framework for these securities.

Trading Impact: Stage-wise restrictions will affect order placement, position limits, and settlement conditions for these securities.

Affected Securities Detail

Impact Justification

Affects trading conditions for six securities with enhanced surveillance requirements at different GSM stages