Description
BSE has moved 4 securities into Graded Surveillance Measure (GSM) stages, with 3 securities placed under Stage II and 1 under Stage III, imposing enhanced trading restrictions.
Summary
BSE has announced the placement of 4 securities into the Graded Surveillance Measure (GSM) framework effective February 27, 2026. Three securities have been moved to GSM Stage II and one to GSM Stage III. GSM is a surveillance mechanism designed to protect investors by imposing progressively stricter trading conditions on securities exhibiting abnormal price movements or other risk indicators.
Key Points
- 3 securities moved to GSM Stage II: Nibe Ordnance and Maritime Ltd, Rishab Special Yarns Ltd, and Madhur Industries Ltd
- 1 security moved to GSM Stage III: Yuranus Infrastructure Ltd (higher restriction level)
- GSM Stage III implies more stringent trading curbs than Stage II, including potential trade-to-trade settlement and reduced price bands
- Securities in higher GSM stages face additional margin requirements and periodic review conditions
- Footnotes indicate that some securities may move to lower GSM stages if included in ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code) frameworks
Regulatory Changes
The following securities have been moved into GSM stages under BSE’s surveillance framework:
| BSE Code | ISIN | Security Name | GSM Stage |
|---|---|---|---|
| 512091 | INE425H01016 | Nibe Ordnance and Maritime Ltd | Stage II |
| 514177 | INE351D01013 | Rishab Special Yarns Ltd | Stage II |
| 519279 | INE110C01015 | Madhur Industries Ltd | Stage II |
| 536846 | INE156M01017 | Yuranus Infrastructure Ltd | Stage III |
Compliance Requirements
- Brokers and trading members must ensure clients are informed of the GSM status of these securities before executing trades
- Investors holding or intending to trade in these securities must comply with applicable GSM-stage trading conditions, including higher margins and trade-to-trade settlement requirements
- Clients may need to provide 100% upfront margin for transactions in GSM securities depending on the stage
- Trading members should update their risk management systems to reflect the revised surveillance status of these securities
Important Dates
- Effective Date: February 27, 2026 — securities are moved into their respective GSM stages as of this circular
- GSM status is subject to periodic review; securities may be moved to higher or lower stages based on subsequent compliance and price behaviour
Impact Assessment
Placement under GSM Stage II and Stage III significantly impacts liquidity and trading conditions for the affected securities. Stage III (Yuranus Infrastructure Ltd) carries the highest restriction level among the four, likely resulting in trade-to-trade settlement, narrow price bands, and elevated margin requirements. Retail investors holding these scrips may face difficulties in exiting positions due to reduced liquidity. Institutional participants may avoid these securities altogether. The inclusion of securities in the ESM or IBC frameworks may cause further downward movement within the GSM framework, as noted in the circular’s footnotes.
Impact Justification
GSM placement directly restricts trading in affected securities, severely impacting liquidity and investor activity in these stocks. While limited to 4 securities, the move to Stage II/III represents significant regulatory action with immediate trading consequences for holders.