Description

BSE has moved 8 securities into various stages of the Graded Surveillance Measure (GSM) framework, ranging from Stage I to Stage IV, effective February 25, 2026.

Summary

BSE has placed 8 securities under the Graded Surveillance Measure (GSM) framework as of February 25, 2026. The securities have been moved into Stages I through IV based on their trading patterns and risk profiles. GSM imposes progressively stricter trading restrictions at higher stages to protect investors from potential price manipulation and abnormal volatility.

Key Points

  • 8 securities in total have been moved into the GSM framework across four stages.
  • Stage I: 2 securities — Rishab Special Yarns Ltd (514177) and Gconnect Logitech and Supply Chain Ltd (544156).
  • Stage II: 3 securities — MFS Intercorp Ltd (513721), Mayur Floorings Ltd (531221), and Yuranus Infrastructure Ltd (536846).
  • Stage III: 2 securities — VR Woodart Ltd (523888) and Purohit Construction Ltd (538993).
  • Stage IV: 1 security — Meyer Apparel Ltd (531613).
  • Securities marked (#) may move to a lower GSM stage due to inclusion in the ESM (Enhanced Surveillance Measure) framework.
  • Securities marked ($) may move to a lower GSM stage due to inclusion in the IBC (Insolvency and Bankruptcy Code) framework.

Regulatory Changes

The GSM framework introduces trade-by-trade settlement and price band restrictions on identified securities. Higher GSM stages impose progressively stricter conditions:

  • Stage I: Trade-to-trade settlement with a 5% price band.
  • Stage II: Trade-to-trade settlement with a 2% price band.
  • Stage III: Trade-to-trade settlement with a 2% price band; only buyers allowed.
  • Stage IV: Trading permitted only once a month on the first Monday, with a 2% price band; only buyers allowed.

Meyer Apparel Ltd (531613) faces the most severe restrictions at Stage IV.

Compliance Requirements

  • Brokers and trading members must ensure clients are aware of the GSM status and restrictions before facilitating trades in these securities.
  • Investors holding these securities should note that selling may be restricted or subject to special settlement procedures depending on the applicable GSM stage.
  • No short selling is permitted in GSM-listed securities.
  • Exchanges and depositories will enforce the applicable trade-to-trade settlement mandatorily.

Important Dates

  • Effective Date: February 25, 2026 — the circular is issued and securities are to be treated under the respective GSM stages from this date.

Impact Assessment

The placement of these securities under GSM has a significant direct impact on their holders and traders:

  • Liquidity risk: Securities under GSM — particularly Stages III and IV — face severely reduced liquidity due to buy-only restrictions and infrequent trading windows.
  • Price discovery: Tight price bands (2–5%) limit price movement, which can cause artificial price suppression or prevent mark-to-market adjustments.
  • Investor confidence: GSM inclusion signals regulatory concern about the quality or trading behavior of these securities, which may further reduce investor interest.
  • Meyer Apparel Ltd (Stage IV) is effectively illiquid for most of the month, with trading permitted only once monthly.
  • Market participants with positions in these 8 securities should reassess risk exposure and be aware of the applicable settlement and trading constraints.

Impact Justification

GSM placement directly restricts trading conditions for affected securities and signals regulatory concern about price manipulation or abnormal price movements; Stage III and IV placements are particularly severe.