Description
BSE announces movement of securities to higher Graded Surveillance Measure (GSM) stages effective April 15, 2026, with enhanced margin requirements, trade-to-trade settlement, and Additional Surveillance Deposit obligations for buyers.
Summary
BSE has announced that a list of securities (as per Annexure_GSM) will be moved to higher stages of the Graded Surveillance Measure (GSM) framework effective April 15, 2026. Trading members are advised to take adequate precautions while trading in these securities, as settlement will be on a trade-to-trade basis with no netting off allowed.
Key Points
- Securities listed in the attached Annexure will be elevated to higher GSM stages effective April 15, 2026
- Settlement for all affected securities will be on a strict trade-to-trade basis with no netting off permitted
- Four GSM stages apply with progressively stringent surveillance actions
- Additional Surveillance Deposit (ASD) obligations imposed on buyers in Stages II, III, and IV
- Trading members must take adequate precautions when trading in affected securities
- Queries can be directed to bse.surv@bseindia.com
Regulatory Changes
The GSM framework (originally published February 23, 2017 and subsequently updated) is being applied with stage-wise surveillance actions:
| Stage | Surveillance Actions |
|---|---|
| I | 100% applicable margin rate AND price band of 5% or lower |
| II | Trade-to-trade with 5% or lower price band AND ASD of 50% of trade value deposited by buyers |
| III | Trade-to-trade with 5% or lower price band AND trading permitted once a week (every Monday/1st trading day) AND ASD of 100% of trade value deposited by buyers |
| IV | Trade-to-trade with 5% or lower price band AND trading permitted once a week (every Monday/1st trading day) AND ASD of 100% of trade value deposited by buyers with no upward price movement |
Compliance Requirements
- Trading Members: Must note the securities listed in Annexure_GSM and apply the relevant surveillance actions from April 15, 2026
- Buyers in Stage II: Must deposit ASD of 50% of trade value
- Buyers in Stages III & IV: Must deposit ASD of 100% of trade value
- All Members: No netting off permitted; all settlement must be on a trade-to-trade basis
- Members should refer to the GSM FAQ at http://www.bseindia.com/markets/equity/EQReports/graded_surveil_measure.aspx?expandable=6 for clarifications
Important Dates
- Notice Date: April 13, 2026
- Effective Date: April 15, 2026 (securities move to higher GSM stages)
- Weekly Trading Window (Stages III & IV): Every Monday or first trading day of the week
Impact Assessment
Securities moved to higher GSM stages face significantly reduced liquidity and increased trading costs. Stage III and IV securities are restricted to once-a-week trading, severely limiting market participation. The mandatory ASD of 50-100% of trade value creates a substantial capital burden for buyers, likely deterring speculative activity. Stage IV securities additionally face a no-upward-movement restriction, effectively capping price appreciation. Retail investors and traders holding or intending to buy affected securities should carefully assess exposure given these constraints. The full list of impacted securities is available in the attached Annexure_GSM.
Impact Justification
GSM stage upgrades impose significant trading restrictions including 100% margins, trade-to-trade settlement, weekly trading limits, and Additional Surveillance Deposits of 50-100% of trade value, materially impacting liquidity and trading activity in affected securities.