Description

BSE moves select securities to higher Graded Surveillance Measure (GSM) stages from April 24, 2026, imposing stricter trading restrictions including trade-to-trade settlement, price bands of 5% or lower, and Additional Surveillance Deposits.

Summary

BSE has announced the movement of select securities into higher stages of the Graded Surveillance Measure (GSM) framework, effective April 24, 2026. The affected securities, listed in the attached Annexure, will face increasingly restrictive surveillance actions depending on their assigned GSM stage (I through IV), ranging from enhanced margin requirements to severely restricted weekly trading with no upward price movement allowed.

Key Points

  • Securities will be moved to higher GSM stages effective April 24, 2026
  • Four GSM stages apply, each with progressively stricter trading restrictions
  • Stage I: 100% applicable margin rate with price band of 5% or lower
  • Stage II: Trade-to-trade settlement, 5% price band, and Additional Surveillance Deposit (ASD) of 50% of trade value by buyers
  • Stage III: Trade-to-trade, 5% price band, trading permitted once a week (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
  • No netting off is allowed; settlement is strictly on trade-to-trade basis
  • The complete list of affected securities is provided in the attached Annexure

Regulatory Changes

This notice is issued with reference to the GSM Framework originally published on February 23, 2017 (Notice No. 20170223-44) and subsequently amended via notices dated March 3, 2017, July 20, 2018, November 29, 2019, and November 17, 2023. The movement of securities to higher GSM stages represents an escalation in surveillance intensity under the existing framework, not a new regulatory change.

Compliance Requirements

  • Trading members must take note of the securities listed in the Annexure and apply the corresponding GSM stage restrictions from April 24, 2026
  • Buyers of Stage II, III, and IV securities must deposit the required Additional Surveillance Deposit (ASD) — 50% for Stage II and 100% for Stage III and IV
  • All trades in affected securities must be settled on a trade-to-trade basis with no netting off permitted
  • Members should exercise adequate caution while trading in the listed securities
  • For clarifications, members may consult the GSM FAQ at the BSE website or write to bse.surv@bseindia.com

Important Dates

  • April 23, 2026: Notice issued
  • April 24, 2026: GSM stage movements become effective for all listed securities in the Annexure

Impact Assessment

The placement of securities under higher GSM stages significantly reduces their liquidity and attractiveness to traders and investors. Stage III and IV securities are particularly impacted, as trading is restricted to once a week (Mondays or first trading day of the week), and buyers must deposit the full trade value as ASD. Stage IV securities face the additional constraint of no upward price movement, effectively capping any potential gains. These measures are designed to protect investors from potentially manipulated or fundamentally weak stocks, but they also signal heightened regulatory concern about these companies. Market participants holding or considering positions in affected securities should review the Annexure carefully and be prepared for substantially reduced trading activity and liquidity.

Impact Justification

Securities moved to GSM stages face severe trading restrictions including mandatory trade-to-trade settlement, 100% margin requirements, weekly trading limits, and Additional Surveillance Deposits up to 100% of trade value, significantly affecting liquidity and tradability.