Description

BSE announces securities moving to higher GSM stages effective April 21, 2026, with enhanced surveillance actions including trade-to-trade settlement, margin requirements, and Additional Surveillance Deposits.

Summary

BSE has notified 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 21, 2026. These securities will attract enhanced surveillance actions including mandatory margins, trade-to-trade settlement, restricted trading frequency, and Additional Surveillance Deposits (ASD) depending on the assigned GSM stage.

Key Points

  • Securities in the Annexure will be moved to higher GSM stages from April 21, 2026
  • Settlement will be on trade-to-trade basis; no netting off allowed
  • Four GSM stages apply progressively stricter surveillance actions
  • Stage I: 100% margin and price band of 5% or lower
  • Stage II: Trade-to-trade, 5% price band, and ASD of 50% of trade value by buyers
  • Stage III: Trade-to-trade, 5% price band, weekly trading (every Monday/1st trading day), and ASD of 100% of trade value by buyers
  • Stage IV: Same as Stage III with an additional restriction of no upward price movement
  • Trading members advised to exercise adequate precautions

Regulatory Changes

This notice is issued with reference to prior GSM framework notices: 20170223-44 (Feb 23, 2017), 20170303-29 (Mar 3, 2017), 20180720-55 (Jul 20, 2018), 20191129-23 (Nov 29, 2019), and 20231117-63 (Nov 17, 2023). Securities are being escalated to higher GSM stages as per the existing GSM Framework provisions.

Compliance Requirements

  • Trading members must ensure trade-to-trade settlement for affected securities with no netting off
  • Buyers in Stage II securities must deposit ASD of 50% of trade value
  • Buyers in Stage III and IV securities must deposit ASD of 100% of trade value
  • Trading in Stage III and IV securities is permitted only once a week (every Monday or first trading day of the week)
  • Members should refer to the BSE GSM FAQ page or contact bse.surv@bseindia.com for clarifications

Important Dates

  • April 21, 2026: Effective date for securities moving into higher GSM stages

Impact Assessment

Securities moved into higher GSM stages face significantly reduced liquidity and increased cost of trading due to mandatory trade-to-trade settlement, higher margin requirements (up to 100%), and compulsory Additional Surveillance Deposits of 50–100% of trade value. Stage III and IV securities face further illiquidity due to weekly trading restrictions and, in Stage IV, a prohibition on upward price movement. Investors and traders in these securities will experience considerable operational and financial constraints. The full list of affected securities is available in the attached Annexure.

Impact Justification

Securities moved to GSM stages face significant trading restrictions including trade-to-trade settlement, 100% margins, weekly trading limits, and mandatory Additional Surveillance Deposits, materially impacting liquidity and investor activity.