BSE Graded Surveillance Measure (GSM) – Updated List of Companies Effective March 16, 2026

Description

BSE has updated the list of securities shortlisted under the Graded Surveillance Measure (GSM) framework, with 53+ companies added effective March 16, 2026, based on Criteria I and/or Criteria II.

Summary

BSE has published an updated list of securities shortlisted under the Graded Surveillance Measure (GSM) framework, effective March 16, 2026. A total of 53+ companies have been identified across Criteria I and Criteria II of the GSM framework. These securities will be subject to enhanced surveillance and trading restrictions from the effective date.

Key Points

• 53+ securities shortlisted under GSM framework effective March 16, 2026
• Companies are classified under Criteria I, Criteria II, or both (Criteria I & II)
• Scrip codes, names, and ISIN codes are provided for each listed security
• The measure applies to a broad range of sectors including finance, pharma, chemicals, infrastructure, and more
• Several securities are placed under both Criteria I and Criteria II simultaneously, indicating higher concern levels

Regulatory Changes

The GSM framework is a surveillance mechanism implemented by BSE to protect investors from abnormal price movements in securities that show signs of unusual trading patterns or weak fundamentals. Securities placed under GSM are subject to:

• Trade-to-trade settlement basis
• Additional price bands
• Periodic review for continuation or exit from the GSM list
• Enhanced disclosure requirements for promoters

Criteria I and Criteria II refer to specific quantitative benchmarks defined by BSE (typically related to price movement versus fundamentals, earnings, and net worth).

Compliance Requirements

• Brokers/Members: Must inform clients holding or intending to trade in listed securities about GSM restrictions effective March 16, 2026
• Investors: Should be aware that trading in these securities will be subject to additional margins and trade-to-trade settlement
• Listed Companies: Promoters of companies under GSM may be required to provide periodic compliance confirmations and disclosures
• Clearing Members: Must apply enhanced margin requirements for transactions in GSM-listed securities

Important Dates

• Circular Date: March 6, 2026
• GSM Effective Date: March 16, 2026

Impact Assessment

Market Impact: High. Over 53 securities across diverse sectors will face trading restrictions, reducing liquidity and increasing transaction costs for retail and institutional investors holding these stocks.

Investor Impact: Investors holding these securities may face difficulty exiting positions due to trade-to-trade settlement and enhanced margins. The GSM designation also signals regulatory concern about the securities’ trading patterns or fundamentals.

Notable Securities Affected (partial list):

Sector Spread: Finance/NBFC, Pharmaceuticals, Chemicals, Real Estate, Agri-products, IT/Software, Aluminium/Metals, Textiles — indicating a broad surveillance sweep rather than sector-specific action.

Impact Justification

This circular directly restricts trading conditions for 53+ listed securities by placing them under GSM framework effective March 16, 2026. Investors and traders holding these stocks will face additional surveillance-based trading curbs, margin requirements, and periodic review obligations. High impact due to large number of affected securities and immediate trading consequences.