Description
BSE notifies trading members that certain securities will be moved to higher GSM stages effective April 20, 2026, attracting enhanced surveillance actions including trade-to-trade settlement, price bands, and Additional Surveillance Deposits.
Summary
BSE has issued Notice No. 20260417-47 informing trading members that certain securities (listed in the attached Annexure) will be moved to higher stages of the Graded Surveillance Measure (GSM) framework effective April 20, 2026. The move triggers progressively stricter surveillance actions depending on the GSM stage assigned, ranging from increased margin requirements to weekly trading restrictions and mandatory Additional Surveillance Deposits (ASD).
Key Points
- Securities per the attached Annexure will be elevated to higher GSM stages from April 20, 2026
- Settlement for 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
- The GSM framework was originally published on February 23, 2017, with subsequent amendments
- Contact for clarifications: bse.surv@bseindia.com
Regulatory Changes
The applicable GSM stages and their respective surveillance actions are:
| Stage | Surveillance Actions |
|---|---|
| Stage I | 100% applicable margin rate; price band of 5% or lower as applicable |
| Stage II | Trade-to-trade with 5% or lower price band; Additional Surveillance Deposit (ASD) of 50% of trade value to be deposited by buyers |
| Stage III | Trade-to-trade with 5% or lower price band; trading permitted once a week (every Monday/1st trading day); ASD of 100% of trade value deposited by buyers |
| Stage IV | Trade-to-trade with 5% or lower price band; trading permitted once a week (every Monday/1st trading day); ASD of 100% of trade value deposited by buyers; no upward price movement permitted |
Compliance Requirements
- Trading members must note the securities listed in the Annexure and apply the corresponding GSM stage restrictions from April 20, 2026
- No netting off is allowed; all trades must be settled on a gross trade-to-trade basis
- Buyers in Stage II, III, and IV securities must deposit the required Additional Surveillance Deposit (ASD) at the prescribed rates
- Members should refer to the GSM FAQ at: http://www.bseindia.com/markets/equity/EQReports/graded_surveil_measure.aspx?expandable=6
Important Dates
- April 17, 2026: Notice date
- April 20, 2026: Effective date for securities moving to higher GSM stages
Impact Assessment
Affected securities will face significantly reduced liquidity and increased trading costs. Stage III and IV securities are particularly impacted, as trading is restricted to once a week and buyers must deposit 100% of trade value as ASD. Stage IV securities additionally have no upward price movement allowed, severely limiting investor exit options. Trading members should update their risk management systems and client communications to reflect these constraints before April 20, 2026.
Impact Justification
Securities moved to higher GSM stages face significant trading restrictions including mandatory trade-to-trade settlement, reduced price bands, weekly trading limits, and Additional Surveillance Deposits up to 100% of trade value, materially impacting liquidity and trading activity.