Description

BSE updates the Graded Surveillance Measure (GSM) framework listing securities under various surveillance stages with applicable price bands and trading groups.

Summary

BSE has issued an update to the Graded Surveillance Measure (GSM) framework listing securities placed under various GSM stages. Each security is assigned an applicable price band (2%, 5%, 10%, or 20%) and a trading group (X, Z, P, T, XT, ZP, B), reflecting the level of surveillance and trading restrictions applied.

Key Points

  • 59+ securities are listed under the GSM framework as of March 9, 2026
  • Price bands range from 2% to 20% depending on the assigned GSM stage
  • Trading groups assigned include X, Z, P, T, XT, ZP, and B
  • Securities span sectors including textiles, finance, real estate, hotels, chemicals, and industrials
  • Companies include Arshiya Ltd, Gayatri Projects Ltd, Noida Toll Bridge Company Ltd, Alps Industries Ltd, and others

Regulatory Changes

The GSM framework assigns heightened surveillance to securities based on criteria such as low fundamentals, price-volume anomalies, or regulatory concerns. Under GSM, securities face restricted price bands and are moved to special trading groups limiting investor participation and liquidity.

Compliance Requirements

  • Trading members must observe the applicable price bands for each listed security
  • Transactions in GSM-listed securities must comply with the assigned trading group rules
  • Investors and brokers should note that buying in certain groups (e.g., XT) may require additional margin or trade-to-trade settlement

Important Dates

  • Effective Date: March 9, 2026 (date of circular issuance)

Impact Assessment

Securities under the GSM framework face significant trading restrictions that reduce liquidity and may deter institutional and retail investors. Price bands as low as 2% severely limit daily price movement. Assignment to groups such as X and Z signals elevated risk and scrutiny. Affected companies span a wide range of market caps and sectors, with many being small or micro-cap entities. Investors holding these securities should review their positions in light of the surveillance designation and associated trading constraints.

Impact Justification

This circular directly restricts trading in 59+ securities by imposing price bands and assigning surveillance groups under the GSM framework, significantly impacting liquidity and investor participation for affected stocks.