Description

BSE has placed 6 securities under various stages of the Graded Surveillance Measure (GSM) framework, ranging from Stage I to Stage IV, effective March 10, 2026.

Summary

BSE has announced the placement of 6 securities into various stages of the Graded Surveillance Measure (GSM) framework as of March 10, 2026. The securities span GSM Stages I through IV, with higher stages implying stricter trading restrictions. This action is part of BSE’s ongoing surveillance mechanism to protect investor interests in securities exhibiting abnormal price or volume behaviour.

Key Points

  • 6 securities have been moved into GSM stages ranging from Stage I to Stage IV
  • OTCO International Ltd (523151) and Systematix Securities Ltd (531432) placed under GSM Stage I
  • Fraser and Company Ltd (539032) placed under GSM Stage II
  • Foundry Fuel Products Ltd (513579) placed under GSM Stage III
  • India Radiators Ltd (505100) and Capricorn Systems Global Solutions Ltd (512169) placed under GSM Stage IV — the most restrictive category in this list
  • Securities marked (#) may be moved lower in GSM due to inclusion in ESM Framework
  • Securities marked ($) may be moved lower in GSM due to inclusion in IBC Framework

Regulatory Changes

The GSM framework imposes progressively stricter trading conditions at each higher stage. Stage I represents initial surveillance with basic restrictions, while Stage IV involves significantly heightened restrictions including trade-to-trade settlement, price bands, and periodic call auction mechanisms. Placement in GSM indicates that BSE’s surveillance systems have flagged these securities for abnormal market activity.

Compliance Requirements

  • Trading members must ensure compliance with the specific trading restrictions applicable to each GSM stage for the listed securities
  • Investors holding or intending to trade these securities must be aware of the applicable settlement and price band rules for each GSM stage
  • Members should communicate GSM status and applicable restrictions to clients dealing in these securities

Important Dates

  • Effective Date: March 10, 2026 — securities moved into their respective GSM stages as per this circular

Impact Assessment

The placement of 6 securities under GSM will significantly impact their trading liquidity and price discovery. Stage IV securities (India Radiators Ltd and Capricorn Systems Global Solutions Ltd) will face the most restrictive trading conditions, potentially reducing daily trading volumes and widening bid-ask spreads. Stage I and II placements (OTCO International, Systematix Securities, Fraser and Company) carry moderate restrictions but still signal heightened regulatory scrutiny. Retail investors in these stocks should exercise caution, as GSM-listed securities often experience reduced market participation and may face further escalation to higher stages if the underlying concerns are not resolved.

Impact Justification

GSM placement directly restricts trading conditions for affected securities, impacting liquidity and investor access. Stage III and IV placements impose the most severe trading restrictions, affecting multiple securities across different sectors.