Description

BSE has moved 8 securities into various stages of the Graded Surveillance Measure (GSM) framework, ranging from Stage I to Stage IV, imposing progressive trading restrictions on the affected scrips.

Summary

BSE has placed 8 securities under various stages of the Graded Surveillance Measure (GSM) framework effective from the announcement date. The GSM framework imposes progressive trading restrictions on securities that exhibit abnormal price or volume behaviour, aiming to protect investor interest and maintain market integrity. Securities are placed in Stage I through Stage IV, with higher stages carrying more stringent restrictions.

Key Points

  • 8 securities have been moved into the GSM framework across four stages.
  • Stage I (2 securities): Rishab Special Yarns Ltd (BSE: 514177, ISIN: INE351D01013) and Gconnect Logitech and Supply Chain Ltd (BSE: 544156, ISIN: INE0QHY01011).
  • Stage II (3 securities): MFS Intercorp Ltd (BSE: 513721, ISIN: INE614F01019), Mayur Floorings Ltd (BSE: 531221, ISIN: INE262W01012), and Yuranus Infrastructure Ltd (BSE: 536846, ISIN: INE156M01017).
  • Stage III (2 securities): VR Woodart Ltd (BSE: 523888, ISIN: INE317D01014) and Purohit Construction Ltd (BSE: 538993, ISIN: INE147J01012).
  • Stage IV (1 security): Meyer Apparel Ltd (BSE: 531613, ISIN: INE100C01024).
  • Securities marked (#) may be moved to a lower GSM stage due to inclusion in the ESM (Enhanced Surveillance Measure) framework.
  • Securities marked ($) may be moved to a lower GSM stage due to inclusion in the IBC (Insolvency and Bankruptcy Code) framework.

Regulatory Changes

The GSM framework is a SEBI-mandated surveillance mechanism. Placement in any GSM stage triggers trading restrictions specific to that stage, which may include trade-to-trade settlement, price band restrictions, and periodic review requirements. Higher stages (III and IV) carry significantly more severe restrictions, including mandatory additional surveillance margins and reduced trading frequency.

Compliance Requirements

  • Brokers and traders must ensure compliance with GSM-stage-specific trading rules for the listed securities.
  • Investors holding these securities should note that trading conditions are now altered; exit or entry into these scrips may be subject to additional margins and settlement obligations.
  • Market participants should review SEBI’s GSM circular for stage-specific obligations applicable to each security.

Important Dates

  • Effective Date: 25 February 2026 (date of circular issuance).
  • GSM stage applicability commences from the trading session following the circular.

Impact Assessment

The placement of these 8 securities under GSM stages will have a direct and immediate impact on their liquidity and tradability. Securities in Stage III and Stage IV (VR Woodart Ltd, Purohit Construction Ltd, and Meyer Apparel Ltd) will face the most severe restrictions, potentially reducing investor interest and market depth significantly. Stage I and II securities will experience moderate restrictions. Retail investors holding these scrips should exercise caution, as GSM-stage securities often face price discovery challenges and reduced exit options. The move reflects regulatory concern over unusual trading patterns in these scrips.

Impact Justification

Routine GSM stage classification update affecting 8 securities with direct and immediate trading restrictions; high impact for holders of these scrips but limited broader market significance.