Description
BSE moves a list of securities to higher Graded Surveillance Measure (GSM) stages from April 17, 2026, imposing enhanced margin, trade-to-trade settlement, and Additional Surveillance Deposit requirements on affected scrips.
Summary
BSE has notified trading members that a list of securities (detailed in the attached Annexure) will be moved to higher stages of the Graded Surveillance Measure (GSM) framework effective April 17, 2026. The GSM framework, originally introduced via Notice No. 20170223-44 (February 23, 2017) and subsequently amended, imposes progressively stringent surveillance restrictions based on the stage assigned to a security.
Key Points
- Securities listed in the attached Annexure will be escalated to their respective higher GSM stages from April 17, 2026.
- Four GSM stages exist, each with increasingly restrictive trading conditions.
- All affected securities will move to a trade-to-trade (T2T) settlement basis at Stage II and above — no netting off is permitted.
- Buyers in affected securities may be required to deposit an Additional Surveillance Deposit (ASD) of 50% or 100% of trade value depending on stage.
- Trading members are urged to take adequate precautions while trading in these securities.
- Clarifications can be sought via the GSM FAQ page or by writing to bse.surv@bseindia.com.
Regulatory Changes
Securities are being moved into higher GSM stages as per the GSM Framework. The surveillance actions applicable by stage are:
| Stage | Surveillance Actions |
|---|---|
| I | Applicable margin rate shall be 100%; price band of 5% or lower as applicable. |
| II | Trade for trade with 5% price band or lower; ASD of 50% of trade value to be deposited by buyers. |
| III | Trade for trade with 5% price band or lower; trading permitted once a week (every Monday / 1st trading day); ASD of 100% of trade value to be deposited by buyers. |
| IV | Same as Stage III plus no upward price movement permitted. |
Compliance Requirements
- Trading Members: Must note the escalated GSM stage assignments and apply the corresponding surveillance actions (margin rates, T2T settlement, ASD collection) from April 17, 2026.
- Buyers: Must deposit the required ASD (50% at Stage II; 100% at Stage III and IV) at the time of trading in affected securities.
- Settlement: No netting off is allowed for any securities under GSM — all trades must be settled on a gross/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 detailed guidance.
Important Dates
- April 16, 2026: Notice issued by BSE.
- April 17, 2026: Effective date — securities move to their respective higher GSM stages.
Impact Assessment
The escalation of securities into higher GSM stages significantly constrains their tradability and liquidity. At Stages III and IV, trading is restricted to once per week (Mondays), which severely limits exit opportunities for holders. The mandatory 100% ASD requirement at these stages makes buying highly capital-intensive, likely suppressing demand and volumes. Stage IV’s prohibition on upward price movement effectively caps appreciation potential, making these securities unattractive for speculative activity. Trading members face operational compliance obligations around ASD collection and T2T settlement enforcement. The actual set of affected companies is listed in the Annexure (not reproduced in this notice text), and the breadth of impact depends on the number and market capitalisation of securities included.
Impact Justification
Affects multiple securities by escalating them to restrictive GSM stages, imposing 100% margins, trade-to-trade settlement, weekly trading limits, and compulsory ASD — directly impacting liquidity and tradability for buyers and members.