Description

BSE places three securities under Graded Surveillance Measure (GSM) framework, moving MFS Intercorp Ltd to Stage I, Blue Chip India Ltd to Stage II, and Karnawati Innovation Ltd to Stage III.

Summary

BSE has announced the movement of three securities into their respective stages of the Graded Surveillance Measure (GSM) framework effective February 20, 2026. MFS Intercorp Ltd enters Stage I, Blue Chip India Ltd moves to Stage II, and Karnawati Innovation Ltd is placed at Stage III.

Key Points

  • MFS Intercorp Ltd (Scrip Code: 513721, ISIN: INE614F01019) moved to GSM Stage I
  • Blue Chip India Ltd (Scrip Code: 531936, ISIN: INE657B01025) moved to GSM Stage II
  • Karnawati Innovation Ltd (Scrip Code: 531671, ISIN: INE214D01021) moved to GSM Stage III
  • Securities marked (#) are downgraded within GSM due to concurrent inclusion in the ESM (Enhanced Surveillance Measure) framework
  • Securities marked ($) are downgraded within GSM due to concurrent inclusion in the IBC (Insolvency and Bankruptcy Code) framework

Regulatory Changes

The GSM framework imposes progressively stricter trading conditions at each stage. Higher GSM stages carry more severe restrictions, including reduced price bands, mandatory additional margins, and trade-for-trade settlement requirements. Movement into higher GSM stages signals elevated regulatory concern over price manipulation or abnormal trading activity in the affected securities.

Compliance Requirements

  • Brokers and members must ensure clients are informed of the GSM status and applicable restrictions for the three affected securities
  • Investors holding or intending to trade these securities must comply with the enhanced margin and settlement requirements applicable to their respective GSM stage
  • Trading members must apply the appropriate surveillance conditions as mandated by the GSM stage for each security

Important Dates

  • Effective Date: February 20, 2026 (date of circular issuance)

Impact Assessment

Placement under GSM significantly impacts liquidity and tradability of the affected stocks. Stage II and Stage III placements (Blue Chip India Ltd and Karnawati Innovation Ltd respectively) are particularly restrictive and may deter institutional and retail participation. Existing investors may face difficulties in exiting positions due to reduced liquidity and heightened margin requirements. The circular affects three small-cap/penny stock securities, limiting broader market impact but posing material risk to concentrated holders of these securities.

Impact Justification

GSM placement directly restricts trading conditions for affected securities, requiring mandatory review and potentially limiting liquidity for investors holding these stocks.