Now Reading: BSE lowers GSM stage for many stocks, easing curbs
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BSE lowers GSM stage for many stocks, easing curbs
The BSE has revised downwards the Graded Surveillance Measure stage for several stocks, offering relief from trading curbs. The move, detailed in a notice on March 28, reclassifies certain scrips to a…
The Story in Brief
The BSE has revised downwards the Graded Surveillance Measure stage for several stocks, offering relief from trading curbs. The move, detailed in a notice on March 28, reclassifies certain scrips to a lower GSM stage, widening the permissible price band and reducing circuit limits. While the exchange has not named specific stocks in the simplified notice, the revision applies to securities previously placed in higher GSM stages for price manipulation or volatility concerns.
Stocks in GSM face stricter trading controls, including compulsory deposit of 100% of trade value for deliveries. The BSE acts in coordination with the Securities and Exchange Board of India to curb speculative excesses. The classification depends on factors such as price rise unrelated to fundamentals, market capitalisation, and trading patterns.
The Indian Opinion
Some brokers and punters see the GSM relaxation as a free pass to resume speculation. But the BSE has published clear stage thresholds and timelines. The real test will come when any of these stocks hit the GSM stage-IV ceiling. If trading volumes spike again, the market regulator will rightly ask whether the exchange lowered the bar too soon.
Source: bseindia.com
This story was synthesised by AI from the source linked above.
