Description

BSE announces movement of 11 securities across different stages of the Graded Surveillance Measure framework, with 2 securities moving to lower stages and 9 securities moving to higher stages.

Summary

BSE has announced changes in the Graded Surveillance Measure (GSM) classification for 11 securities effective February 9, 2026. The GSM framework is a market surveillance mechanism that places securities under enhanced monitoring based on certain criteria. Of the affected securities, 2 are moving to lower GSM stages (Stage 0) due to inclusion in the Enhanced Surveillance Measure (ESM) framework, while 9 securities are moving to higher surveillance stages (Stages I, II, and III).

Key Points

  • Total 11 securities affected by GSM stage changes
  • 2 securities (Garware Synthetics Ltd and Gopal Iron & Steels Company Gujarat Ltd) moving to Stage 0 due to ESM inclusion
  • 6 securities moving to GSM Stage I: Tamilnadu Steel Tubes, Mardia Samyoung Capillary Tube, Manraj Housing Finance, Meyer Apparel, Mega Fin (India), and Simplex Mills Company
  • 1 security (Sparkle Gold Rock Limited) moving to GSM Stage II
  • 2 securities (Adline Chem Lab Limited and Santosh Fine-Fab Ltd) moving to GSM Stage III
  • Securities in higher GSM stages face additional trading restrictions and margin requirements

Regulatory Changes

The Graded Surveillance Measure framework applies progressive surveillance stages (0 to III) based on market behavior and risk indicators. Securities moving to higher stages are subject to:

  • Enhanced disclosure requirements
  • Increased margin requirements for trading
  • Trade-to-trade settlement in some cases
  • Additional price bands or circuit filters
  • Reduced position limits

Securities marked with (#) are moving to lower GSM stages because they have been included in the ESM (Enhanced Surveillance Measure) framework, which is a separate surveillance mechanism.

Compliance Requirements

  • Investors and traders must be aware of the changed GSM classification before trading these securities
  • Brokers should ensure clients are informed about enhanced margin requirements for securities in higher GSM stages
  • Market participants should review position limits and trading restrictions applicable to each GSM stage
  • Additional due diligence recommended for securities in Stage II and Stage III

Important Dates

  • Effective Date: February 9, 2026
  • Circular Date: February 9, 2026

Impact Assessment

Market Impact: Medium - The movement of securities to higher GSM stages typically results in reduced trading volumes and liquidity due to increased margin requirements and trading restrictions. Securities in Stage III face the most stringent surveillance measures.

Investor Impact: Investors holding these securities may face higher margin requirements and trading restrictions. The inclusion in higher GSM stages may indicate underlying concerns about price volatility, volume patterns, or corporate governance issues.

Trading Impact: Securities moving to Stage I, II, or III will experience trade-to-trade settlement requirements in most cases, preventing intraday trading and requiring full upfront margins. This significantly impacts day traders and short-term investors.

Liquidity Concerns: The 2 securities moving to GSM Stage III (Adline Chem Lab and Santosh Fine-Fab) face the highest level of surveillance and will likely see substantial reduction in trading activity and liquidity.

Impact Justification

Affects trading conditions for 11 securities with varying surveillance stages. Movement to higher GSM stages increases trading restrictions and margin requirements, impacting liquidity and investor accessibility.