Description

BSE notifies movement of 5 securities into various GSM stages, including Sadbhav Engineering Ltd moving to Stage 0 due to ESM inclusion, and four others advancing to Stages II, III, and IV.

Summary

BSE has announced the movement of 5 securities into their respective Graded Surveillance Measure (GSM) stages effective from this circular dated February 26, 2026. The GSM framework is designed to alert and protect investors in securities that exhibit certain abnormal price and volume behavior. Sadbhav Engineering Ltd is being moved to a lower GSM stage (Stage 0) due to its concurrent inclusion in the Enhanced Surveillance Measure (ESM) Framework.

Key Points

  • 5 securities are being placed/moved into GSM stages as part of BSE’s ongoing surveillance framework.
  • Sadbhav Engineering Ltd (Scrip Code: 532710, ISIN: INE226H01026) is moving to GSM Stage 0 — marked with #, indicating it is being moved to a lower GSM stage due to inclusion in the ESM Framework.
  • Universal Office Automation Ltd (Scrip Code: 523519, ISIN: INE951C01012) is moving to GSM Stage II.
  • Neelkanth Limited (Scrip Code: 512565, ISIN: INE581D01015) is moving to GSM Stage III.
  • V R Woodart Ltd. (Scrip Code: 523888, ISIN: INE317D01014) is moving to GSM Stage IV.
  • Purohit Construction Limited (Scrip Code: 538993, ISIN: INE147J01012) is moving to GSM Stage IV.
  • Securities marked (*) are per NSE data.
  • Securities marked ($) (none in this circular) would indicate movement lower in GSM due to IBC Framework inclusion.

Regulatory Changes

Under the GSM framework, securities placed in higher stages face progressively stricter trading conditions:

  • Stage I & II: Price band restrictions and periodic call auction sessions.
  • Stage III & IV: More severe trading restrictions including reduced trading frequency (e.g., trade once a week or once a month), mandatory 100% upfront margins, and additional surveillance deposits.
  • Stage 0: Applied to securities that would otherwise qualify for a higher GSM stage but are being moderated due to simultaneous placement in ESM or IBC frameworks.

Compliance Requirements

  • Brokers and trading members must apply the applicable GSM-stage trading restrictions for the listed securities immediately upon notification.
  • Investors holding these securities should be aware of the changed trading conditions, including potential restrictions on order types, price bands, and settlement obligations.
  • Companies placed under GSM are encouraged to improve corporate governance and disclosure practices to facilitate removal from the GSM list.

Important Dates

  • Circular Date: February 26, 2026 — GSM stage placements are effective as notified by BSE on this date.
  • Subsequent reviews of GSM placements occur periodically; entities should monitor BSE announcements for any reclassification.

Impact Assessment

Sadbhav Engineering Ltd is the most prominent security in this list, being a known infrastructure and road construction company. Its placement under GSM Stage 0 (driven by ESM inclusion) signals heightened regulatory scrutiny and may impact investor sentiment and liquidity.

V R Woodart Ltd. and Purohit Construction Limited being moved to the stringent GSM Stage IV implies near-complete trading restrictions (typically one trade per month via call auction), making these securities highly illiquid for retail investors.

Overall, investors in these securities face:

  • Reduced liquidity and limited exit opportunities, especially for Stage III and IV securities.
  • Potential margin requirements and upfront payment obligations.
  • Reputational and valuation risk due to surveillance classification.

Market participants are advised to exercise significant caution when dealing in these securities.

Impact Justification

GSM stage placement imposes significant trading restrictions on affected securities, including price band changes and periodic call auction mechanisms. Sadbhav Engineering (a notable mid-cap) moving under ESM/GSM overlap warrants attention from investors holding these securities.