Description
BSE notifies trading members that certain securities will be moved to higher GSM stages effective April 23, 2026, attracting enhanced surveillance actions including trade-for-trade settlement, additional margin requirements, and trading restrictions.
Summary
BSE’s Surveillance department 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 23, 2026. Securities at higher GSM stages face progressively stricter trading restrictions, including trade-for-trade settlement, increased margin requirements, Additional Surveillance Deposits (ASD), and in advanced stages, trading limited to once per week.
Key Points
- Securities listed in the attached Annexure will be elevated to higher GSM stages from April 23, 2026
- Settlement for all affected securities will be on a trade-for-trade (T2T) basis with no netting off permitted
- Four GSM stages exist with progressively stringent surveillance actions
- Trading members are advised to take adequate precautions while trading in these securities
- Queries can be directed to bse.surv@bseindia.com or via the GSM FAQ page
Regulatory Changes
The move is made under the GSM Framework originally published on February 23, 2017, with subsequent updates referenced in notices dated March 3, 2017; July 20, 2018; November 29, 2019; and November 17, 2023. The four-stage surveillance action framework is as follows:
| Stage | Surveillance Actions |
|---|---|
| I | 100% applicable margin rate; price band of 5% or lower |
| II | Trade-for-trade; price band 5% or lower; ASD of 50% of trade value deposited by buyers |
| III | Trade-for-trade; price band 5% or lower; trading once a week (every Monday/1st trading day); ASD of 100% of trade value by buyers |
| IV | Trade-for-trade; price band 5% or lower; trading once a week (every Monday/1st trading day); ASD of 100% of trade value by buyers; no upward price movement allowed |
Compliance Requirements
- Trading members must ensure trade-for-trade settlement for all securities in the GSM Annexure — no netting off is permitted
- 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 restricted to once per week (every Monday or first trading day of the week)
- Stage IV securities additionally cannot move upward in price
- Members must apply the applicable (5% or lower) price bands for all GSM-listed securities
Important Dates
- April 22, 2026: Notice issued
- April 23, 2026: Effective date — securities moved to their respective higher GSM stages
Impact Assessment
The elevation of securities to higher GSM stages significantly restricts market activity for affected stocks. Trade-for-trade settlement eliminates intraday netting, increasing capital requirements for participants. The ASD requirement (50%–100% of trade value) substantially raises the cost of taking positions in these securities. For Stage III and IV securities, weekly trading limits drastically reduce liquidity, making orderly entry and exit difficult for investors. Affected securities will likely see reduced volumes, wider bid-ask spreads, and heightened volatility on permitted trading days. Retail investors holding these stocks face meaningful liquidity risk.
Impact Justification
GSM stage upgrades directly restrict trading activity for affected securities, imposing mandatory trade-for-trade settlement, 100% ASD, weekly trading limits, and enhanced margins — significantly impacting liquidity and investor participation.