Description

BSE announces movement of specified securities to higher GSM stages effective April 10, 2026, with enhanced surveillance actions including trade-to-trade settlement, margin requirements, and Additional Surveillance Deposit obligations.

Summary

BSE has notified trading members that certain securities (listed in the attached Annexure) will be moved to their respective higher stages of the Graded Surveillance Measure (GSM) framework effective April 10, 2026. The move is pursuant to the GSM Framework published on February 23, 2017 and subsequent exchange notices. Securities at higher GSM stages attract progressively restrictive surveillance actions.

Key Points

  • Securities in the Annexure will move to higher GSM stages from April 10, 2026
  • Settlement for all affected securities will be on a trade-to-trade basis with no netting off allowed
  • Trading members are advised to take adequate precautions while trading in these securities
  • Contact for clarifications: bse.surv@bseindia.com

Regulatory Changes

The circular references the GSM framework established via Exchange notice no. 20170223-44 (February 23, 2017) and updated through notices dated March 3, 2017, July 20, 2018, November 29, 2019, and November 17, 2023. Securities are being escalated to higher surveillance stages based on that framework.

Compliance Requirements

Stage I: Applicable margin rate of 100%; price band of 5% or lower.

Stage II: Trade-for-trade settlement; price band of 5% or lower; Additional Surveillance Deposit (ASD) of 50% of trade value to be deposited by buyers.

Stage III: Trade-for-trade settlement; price band of 5% or lower; trading permitted once a week (every Monday / 1st trading day of the week); ASD of 100% of trade value to be deposited by buyers.

Stage IV: Trade-for-trade settlement; price band of 5% or lower; trading permitted once a week (every Monday / 1st trading day of the week); ASD of 100% of trade value to be deposited by buyers; no upward price movement permitted.

Trading members must ensure no netting off is done for settlements of affected securities.

Important Dates

  • April 9, 2026: Notice issued
  • April 10, 2026: Effective date — securities move to their respective higher GSM stages

Impact Assessment

Trading members and investors in the affected securities face increased compliance obligations, including mandatory ASD deposits (50%–100% of trade value) and trade-to-trade settlement with no netting. Securities in Stages III and IV are further restricted to once-a-week trading, significantly reducing liquidity. Stage IV additionally prohibits upward price movement, making these among the most restrictive trading conditions on the exchange. The specific securities impacted are listed in the Annexure (not reproduced here); members should refer to the attached PDF for the full list.

Impact Justification

Routine GSM stage movement affecting specific securities listed in the annexure; impacts trading members and buyers through mandatory ASD deposits, trade-to-trade settlement, and restricted trading frequency for higher stages.