Description

BSE announces 8 securities being moved into various GSM stages (I, II, and III) effective March 12, 2026, as part of the exchange's surveillance framework to protect investor interests.

Summary

BSE has announced the movement of 8 securities into their respective Graded Surveillance Measure (GSM) stages effective March 12, 2026. GSM is a surveillance framework designed to alert and protect investors from potentially risky securities by imposing additional trading conditions. Securities are categorised into stages (I through VI) based on their risk profile, with higher stages indicating greater restrictions.

Key Points

  • 2 securities are being moved into GSM Stage I (initial surveillance stage)
  • 5 securities are being moved into GSM Stage II (escalated surveillance)
  • 1 security is being moved into GSM Stage III (heightened surveillance with stricter trading conditions)
  • LCC Infotech Ltd (532019) is being placed as per NSE data (marked with *)
  • No securities are marked under ESM or IBC framework exclusions in this circular

Affected Securities

Sr. NoSecurity CodeISINSecurity NameGSM Stage
1539378INE848R01018Soni Medicare LtdI
2543541INE0KHQ01010Sailani Tours N Travels LtdI
3500248INE073A01019Krishna Filament Industries LtdII
4509099INE811Q01018Oswal Leasing LtdII
5509887INE896E01023Sinnar Bidi Udyog LtdII
6514460INE670H01017Oswal Yarns LtdII
7532019INE938A01021LCC Infotech Ltd*II
8539032INE184Q01010Fraser and Company LtdIII

*As per NSE

Regulatory Changes

The GSM framework imposes progressively restrictive trading conditions as a security moves to higher stages:

  • Stage I: Trade-to-trade settlement; price bands may be applied
  • Stage II: More stringent margin requirements and price band restrictions
  • Stage III: Further restrictions including reduced price bands and higher margins

Securities in the GSM framework may be moved to lower stages if they qualify under the ESM (Enhanced Surveillance Measure) or IBC (Insolvency and Bankruptcy Code) frameworks.

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 these securities must be aware of additional margins and settlement obligations applicable under the respective GSM stages
  • Market participants should note that trading in these securities will be subject to enhanced scrutiny and conditions as per the applicable GSM stage rules

Important Dates

  • Effective Date: March 12, 2026 — securities are placed into their respective GSM stages as announced

Impact Assessment

The placement of these 8 securities under GSM will materially impact their liquidity and trading activity. Investors in these scrips will face higher margin requirements and settlement restrictions, making it more difficult and costly to trade. Fraser and Company Ltd (539032), placed in Stage III, faces the most significant restrictions among this batch. The inclusion of LCC Infotech Ltd based on NSE data highlights cross-exchange surveillance coordination. Retail investors are particularly cautioned, as GSM placement is a regulatory signal of elevated risk associated with these securities.

Impact Justification

GSM placement directly restricts trading conditions for affected securities, significantly impacting liquidity and investor access. Eight securities are affected across three escalating stages, with Stage III being the most restrictive.