Description

BSE has moved 6 securities into their respective GSM stages (I through IV), including OTCO International, Systematix Securities, Fraser and Company, Foundry Fuel Products, India Radiators, and Capricorn Systems Global Solutions.

Summary

BSE has announced the movement of 6 securities into their respective Graded Surveillance Measure (GSM) stages effective as per this circular dated March 10, 2026. The GSM framework is a regulatory mechanism designed to enhance market integrity by imposing additional surveillance and trading restrictions on securities exhibiting abnormal price movements or other risk indicators. Securities are placed in stages I through VI, with higher stages implying stricter restrictions.

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) are placed in GSM Stage I.
  • Fraser and Company Ltd (539032) is placed in GSM Stage II.
  • Foundry Fuel Products Ltd (513579) is placed in GSM Stage III.
  • India Radiators Ltd (505100) and Capricorn Systems Global Solutions Ltd (512169) are placed in GSM Stage IV.
  • Securities marked (#) may move to lower GSM stages due to inclusion in the ESM (Enhanced Surveillance Measure) Framework.
  • Securities marked ($) may move to lower GSM stages due to inclusion in the IBC (Insolvency and Bankruptcy Code) Framework.

Regulatory Changes

The GSM framework imposes progressively stringent trading restrictions as securities move to higher stages. Placement under GSM restricts the frequency and manner in which trades can be conducted in the affected scrips. Higher stages (III and IV) carry significantly more restrictive conditions compared to Stage I, potentially including trade-to-trade settlement, price bands, and periodic review requirements.

Compliance Requirements

  • Trading members must ensure that trades in GSM-listed securities comply with the applicable stage-specific restrictions.
  • Investors holding or intending to trade in these securities should be aware of the additional surveillance conditions imposed.
  • Market participants should monitor BSE announcements for any further movement of these securities within or out of the GSM framework.
  • Brokers must inform their clients about the GSM status of these securities prior to executing any orders.

Important Dates

  • Circular Date: March 10, 2026 — GSM stage movements are effective as per this notification.
  • Market participants should check the BSE website for the exact applicability date of the revised GSM stages.

Impact Assessment

The placement of these 6 securities under GSM stages I–IV will directly impact their liquidity and tradability on the BSE platform. Securities in higher GSM stages (III and IV) — Foundry Fuel Products Ltd, India Radiators Ltd, and Capricorn Systems Global Solutions Ltd — face the most severe trading restrictions, which may significantly reduce market activity and investor participation in these scrips. Retail investors holding positions in these stocks should exercise caution, as GSM-placed securities often experience reduced price discovery and limited exit opportunities. The circular also references the interplay between the GSM framework and ESM/IBC frameworks, which could result in downward stage revisions for certain securities meeting those additional criteria.

Impact Justification

GSM placement directly restricts trading of the affected securities, imposing significant compliance requirements on traders and investors holding these stocks. Multiple securities across stages I-IV are affected, indicating active regulatory oversight of potentially non-compliant or high-risk scrips.