Description
NSE updates the list of securities under Graded Surveillance Measure (GSM) framework, with new additions, continuations, and removals effective December 2025.
Summary
NSE has issued the quarterly review update for securities under the Graded Surveillance Measure (GSM) framework. The GSM is an additional surveillance measure applicable to securities whose prices are not commensurate with financial health and fundamentals including earnings, book value, fixed assets, net worth, market capitalization, and P/E multiples. The circular identifies securities being newly placed under GSM, those continuing in GSM, and those moving out of the framework.
Key Points
- Quarterly review of GSM framework completed for identification of securities
- New securities identified for placing in GSM framework (Annexure I) with applicable action and monitoring dates
- Existing securities to continue in GSM framework (Annexure II)
- Some securities to move out of GSM framework effective December 09, 2025 (Annexure III)
- At least 13 securities newly shortlisted including ANSALAPI, ARSHIYA, BLUECOAST, CELEBRITY, MARSHALL, MORARJEE, PERFECT, REGENCERAM, SADBHAV, SADBHIN, SANWARIA, SECURKLOUD, and SKIL
- Securities placed based on Criteria 1 (price vs fundamentals) and/or Criteria 2
- GSM framework operates in conjunction with all other prevailing surveillance measures
- Securities in GSM Stage VI based on SEBI directive continue to remain until further directions
- Trading members advised to exercise additional due diligence
Regulatory Changes
No new regulatory changes introduced. This circular implements the existing GSM framework established by:
- NSE/SURV/34262 dated February 23, 2017 (introduction of GSM framework)
- NSE/SURV/38389 dated July 20, 2018
- NSE/SURV/38638 dated August 17, 2018
- NSE/SURV/42790 dated November 29, 2019
- NSE/SURV/59425 dated November 17, 2023
- NSE/SURV/64066 dated September 20, 2024
- NSE/SURV/35548 dated August 07, 2017 (SEBI directive for GSM Stage VI)
- NSE/SURV/45666 dated September 10, 2020
Compliance Requirements
- Trading members must exercise additional due diligence while trading in GSM securities either on own account or on behalf of clients
- Additional Surveillance Deposit (ASD) requirements apply to securities under GSM framework
- Market participants must comply with all GSM framework provisions in conjunction with other surveillance measures
- Members should refer to FAQs at https://www.nseindia.com/regulations/graded-surveillance-measure for detailed information
- Queries to be directed to surveillance@nse.co.in
Important Dates
- December 05, 2025: Circular issue date
- December 09, 2025: Securities in Annexure III move out of GSM framework
- December 15, 2025: New securities in Annexure I placed in GSM framework (effective date)
- December 15, 2025: Additional Surveillance Deposit (ASD) released for securities moving out of GSM (Annexure III)
Impact Assessment
Trading Impact: Securities under GSM face enhanced surveillance including potential Additional Surveillance Deposit requirements, price bands, and trading restrictions. This affects liquidity and trading patterns for the identified securities.
Investor Impact: Investors in the 13+ newly identified securities face higher transaction costs due to ASD requirements and should be aware of the price-fundamental mismatch concerns raised by the exchange.
Market Participants: Brokers and trading members must implement additional due diligence processes for GSM securities, affecting operational workflows and client communication requirements.
Risk Mitigation: The GSM framework aims to protect investors by highlighting securities where prices may not reflect underlying fundamentals, helping prevent speculative excesses and market manipulation.
Impact Justification
GSM framework affects trading members and investors through Additional Surveillance Deposit requirements and trading restrictions on securities with prices not commensurate with fundamentals. Multiple securities are being added to or removed from surveillance.