Description
NSE announces periodic review results for securities under GSM framework with four securities eligible to move to lower surveillance stages effective January 12, 2026.
Summary
NSE has conducted a periodic review of securities under the Graded Surveillance Measure (GSM) framework in coordination with other exchanges. As a result, four securities have been identified as eligible to move to lower stages of the GSM framework, effective January 12, 2026. This relaxation indicates improved compliance and reduced surveillance concerns for these securities.
Key Points
- Periodic review conducted in coordination with other stock exchanges
- Four securities eligible for GSM stage relaxation effective January 12, 2026
- NOIDA TOLL BRIDGE COMPANY LIMITED moves from Stage I to Stage 0 (exit from GSM)
- LCC INFOTECH LIMITED moves from Stage II to Stage I (with series change from BE to EQ)
- BLUE CHIP INDIA LIMITED moves from Stage III to Stage II (remains in BE series)
- GUJARAT LEASE FINANCING LIMITED moves from Stage III to Stage II (remains in BE series)
- Relaxation based on assessment of improved compliance parameters
Regulatory Changes
This circular implements the periodic review provisions of the GSM framework as established by:
- NSE/SURV/34262 dated February 23, 2017 (introducing GSM framework)
- NSE/SURV/42790 dated November 29, 2019 (GSM updates)
- NSE/SURV/59425 dated November 17, 2023 (GSM for SME Segment)
- NSE/SURV/64066 dated September 20, 2024 (Extension of GSM on PSU Companies)
The relaxation allows securities to move to lower surveillance stages based on demonstrated improvement in compliance metrics.
Compliance Requirements
- Members should note the revised GSM stages for affected securities
- Trading members must update their systems to reflect new surveillance categories
- LCC INFOTECH LIMITED will undergo series change from BE to EQ along with stage reduction
- Members should refer to NSE’s FAQs on GSM at https://www.nseindia.com/regulations/graded-surveillance-measure
- For queries, members should contact surveillance@nse.co.in
Important Dates
- Circular Date: January 09, 2026
- Effective Date: January 12, 2026 - GSM stage changes become effective
Impact Assessment
Positive Impact on Affected Securities:
- Reduced surveillance burden indicates improved corporate governance and compliance
- Lower GSM stages may improve liquidity and investor confidence
- NOIDATOLL exits GSM framework completely, indicating full compliance restoration
- LCCINFOTEC upgraded to EQ series from BE series, improving trading flexibility
Market Impact:
- Limited overall market impact as only four securities affected
- Demonstrates effective functioning of periodic review mechanism
- Provides incentive for other GSM securities to improve compliance
Trading Implications:
- Securities may experience improved trading activity due to reduced restrictions
- Lower surveillance stages typically involve fewer trading restrictions and lower margins
Securities Details
| Security | Symbol | ISIN | From Stage | To Stage | Series |
|---|---|---|---|---|---|
| NOIDA TOLL BRIDGE COMPANY LIMITED | NOIDATOLL | INE781B01015 | I | 0 | EQ |
| LCC INFOTECH LIMITED | LCCINFOTEC | INE938A01021 | II | I | EQ (changed from BE) |
| BLUE CHIP INDIA LIMITED | BLUECHIP | INE657B01025 | III | II | BE |
| GUJARAT LEASE FINANCING LIMITED | GLFL | INE540A01017 | III | II | BE |
Impact Justification
Routine periodic relaxation of surveillance measures for four securities moving to lower GSM stages, indicating improved compliance. Positive development with limited market-wide impact.