Graded Surveillance Measure (GSM) - Securities Moving into GSM Stages

Description

BSE announces 10 securities being moved into various GSM stages (0, I, II, IV) effective March 11, 2026, including one security moving lower due to ESM framework inclusion.

Summary

BSE has announced the movement of 10 securities into their respective Graded Surveillance Measure (GSM) stages as of March 11, 2026. The GSM framework is designed to alert and protect investors from securities exhibiting abnormal price movements disproportionate to their financial health. Securities are placed across GSM Stages 0 through IV, with progressively stricter trading restrictions at higher stages.

Key Points

• 10 securities are being moved into GSM stages ranging from Stage 0 to Stage IV
• Inland Printers Ltd (530787) is placed at GSM Stage 0, moving lower within the GSM framework due to its inclusion in the ESM (Enhanced Surveillance Measure) framework
• 6 securities are being moved to GSM Stage I: Tamilnadu Steel Tubes Ltd., Mardia Samyoung Capillary Tube, Adarsh Plant Protect Ltd., VK Global Industries Limited, Manraj Housing Finance Ltd., and Geetanjali Credit And Capital Limited, Ace Men Engg Works Limited
• Iykot Hitech Toolroom Ltd. (522245) is being moved to GSM Stage II
• Foundry Fuel Products Ltd. (513579) is being moved to the most restrictive GSM Stage IV
• Securities marked (#) move lower in the GSM framework due to inclusion in the ESM framework
• Securities marked ($) move lower due to inclusion in the IBC framework

Regulatory Changes

The following securities are newly placed under the Graded Surveillance Measure:

Compliance Requirements

• Investors and brokers must note the applicable trading restrictions for each GSM stage before executing trades in the listed securities
• Higher GSM stages (e.g., Stage IV for Foundry Fuel Products Ltd.) impose the most stringent restrictions, potentially including trade-to-trade settlement and/or periodic call auction mechanisms
• Brokers are required to inform clients of GSM placements and the associated risk implications
• Companies placed under GSM may need to provide additional disclosures to the exchange as per BSE’s surveillance framework

Important Dates

• Effective Date: March 11, 2026 — GSM stage assignments are applicable from this circular date

Impact Assessment

The placement of 10 securities under various GSM stages will have significant market impact:

• Liquidity Impact: Trading restrictions associated with GSM stages will reduce liquidity in all 10 securities. Stage IV placement of Foundry Fuel Products Ltd. (513579) will be particularly restrictive.
• Investor Impact: Retail and institutional investors holding these securities face potential difficulty in exiting positions due to restricted trading conditions.
• ESM Overlap: Inland Printers Ltd. is subject to both ESM and GSM frameworks, compounding surveillance restrictions.
• Market Sentiment: Placement under GSM signals regulatory concern about the price discovery mechanism and fundamental health of these companies, likely triggering negative market sentiment.
• Stage I Concentration: The bulk placement of 7 securities at Stage I suggests a pattern of similar anomalous behavior among smaller/mid-cap scrips currently under heightened scrutiny.

Impact Justification

GSM placements impose significant trading restrictions on affected securities, directly impacting liquidity and investor access for all 10 listed companies across multiple GSM stages.