Description

BSE updates Graded Surveillance Measure framework with Sanwaria Consumer Ltd moving to GSM Stage I and Adline Chem Lab Limited moving to GSM Stage II.

Summary

BSE has announced changes to the Graded Surveillance Measure (GSM) framework affecting two securities. Sanwaria Consumer Ltd (Security Code: 519260, ISIN: INE890C01046) is being moved to GSM Stage I, while Adline Chem Lab Limited (Security Code: 524604, ISIN: INE276T01018) is being moved to GSM Stage II. The circular notes that Sanwaria Consumer Ltd information is as per NSE.

Key Points

  • Two securities are moving into GSM surveillance stages
  • Sanwaria Consumer Ltd moves to GSM Stage I (lower surveillance level)
  • Adline Chem Lab Limited moves to GSM Stage II (higher surveillance level)
  • Securities marked (#) move to lower GSM stages when included in ESM Framework
  • Securities marked ($) move to lower GSM stages when included in IBC Framework
  • Sanwaria Consumer Ltd information sourced from NSE

Regulatory Changes

The GSM framework placement changes impose additional surveillance measures on the affected securities. GSM Stage I typically involves initial surveillance measures, while GSM Stage II involves stricter surveillance and trading restrictions. Securities under GSM are subject to:

  • Enhanced price bands
  • Additional margin requirements
  • Increased disclosure obligations
  • Potential trading frequency restrictions

Compliance Requirements

For Listed Companies:

  • Comply with enhanced disclosure requirements under GSM framework
  • Address concerns that led to GSM classification
  • Take corrective measures to improve compliance parameters

For Trading Members:

  • Apply appropriate risk management measures
  • Ensure adequate margin collection from clients
  • Inform clients about GSM status of securities

For Investors:

  • Be aware of increased surveillance and potential trading restrictions
  • Understand enhanced risk associated with GSM securities
  • Consider liquidity constraints before trading

Important Dates

  • Effective Date: February 5, 2026 (circular date)
  • Implementation details and specific effective dates to be confirmed through subsequent exchange communications

Impact Assessment

Market Impact:

  • Reduced liquidity expected in both securities due to surveillance measures
  • Potential price volatility as market adjusts to new classification
  • Investor caution likely to increase, affecting trading volumes

Trading Impact:

  • Stage I (Sanwaria Consumer): Initial surveillance with moderate restrictions
  • Stage II (Adline Chem Lab): Stricter surveillance with enhanced trading restrictions and higher margins
  • Both securities may face reduced institutional participation

Investor Impact:

  • Higher transaction costs due to additional margin requirements
  • Limited trading opportunities due to potential price band restrictions
  • Increased due diligence required before investment decisions

The GSM framework is designed to alert investors about securities with unusual price movements or other concerns, promoting informed decision-making while allowing continued trading under enhanced surveillance.

Impact Justification

Surveillance stage changes affect trading conditions for two securities with potential impact on liquidity and investor participation