Description
BSE moves select securities to higher GSM stages effective April 22, 2026, imposing stricter surveillance actions including trade-to-trade settlement, enhanced margins, and Additional Surveillance Deposits.
Summary
BSE has issued Notice No. 20260421-34 announcing the movement of certain securities to higher stages of the Graded Surveillance Measure (GSM) framework, effective April 22, 2026. Affected securities will face progressively stringent surveillance actions depending on their assigned GSM stage, ranging from enhanced margin requirements to restricted weekly trading with mandatory Additional Surveillance Deposits (ASD).
Key Points
- Securities listed in the attached Annexure will be moved to higher GSM stages with effect from April 22, 2026
- Four GSM stages apply, each with escalating surveillance restrictions
- Settlement for all affected securities will be on a trade-to-trade (T2T) basis — no netting off allowed
- Trading members must take adequate precautions while trading in these securities
- The GSM framework was originally published on February 23, 2017
Regulatory Changes
The GSM framework applies the following stage-wise surveillance actions:
| Stage | Surveillance Actions |
|---|---|
| Stage I | Applicable margin rate of 100% and price band of 5% or lower |
| Stage II | Trade-to-trade with price band of 5% or lower + ASD of 50% of trade value deposited by buyers |
| Stage III | Trade-to-trade with price band of 5% or lower + 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 price band of 5% or lower + Trading permitted once a week (every Monday/1st trading day) + ASD of 100% of trade value deposited by buyers + no upward price movement |
This notice references and builds upon the following prior exchange notices: 20170223-44, 20170303-29, 20180720-55, 20191129-23, and 20231117-63.
Compliance Requirements
- Trading Members: Must note the securities listed in the Annexure and apply appropriate GSM-stage restrictions from April 22, 2026
- Buyers: Must deposit the applicable Additional Surveillance Deposit (ASD) — 50% of trade value at Stage II, 100% at Stages III and IV
- All Members: No netting off permitted; all settlement must be on trade-to-trade basis
- Members may refer to the GSM FAQ at: http://www.bseindia.com/markets/equity/EQReports/graded_surveil_measure.aspx?expandable=6
- For clarifications, members may write to: bse.surv@bseindia.com
Important Dates
- Notice Date: April 21, 2026
- Effective Date: April 22, 2026 — securities moved to respective higher GSM stages
- Trading Day Restriction (Stages III & IV): Trading permitted only on Mondays or the 1st trading day of each week
Impact Assessment
Securities moved to higher GSM stages face significant liquidity constraints and increased cost of trading. Stage III and IV securities are effectively limited to once-a-week trading, making them highly illiquid. The mandatory ASD requirement (up to 100% of trade value at Stages III and IV) substantially increases the capital requirement for buyers. The 5% price band combined with no upward movement restriction at Stage IV virtually freezes any price appreciation. Retail and institutional investors holding or looking to trade these securities should exercise extreme caution. The full list of affected securities is available in the Annexure attached to the original notice (PDF).
Impact Justification
Securities moving to higher GSM stages face severe trading restrictions including trade-to-trade settlement, 100% margins, weekly trading limits, and mandatory Additional Surveillance Deposits - significantly impacting liquidity and tradability of affected securities.