Description
BSE notice informing trading members that certain securities will be moved to higher GSM stages effective April 28, 2026, with enhanced surveillance actions including trade-to-trade settlement, price bands, and Additional Surveillance Deposits.
Summary
BSE Notice No. 20260427-28 informs 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 28, 2026. The GSM framework is designed to protect investor interests by imposing progressive surveillance actions on securities exhibiting abnormal price movements or other risk indicators.
Key Points
- Securities listed in the Annexure will move to higher GSM stages effective April 28, 2026
- Four GSM stages with progressively stricter surveillance actions apply
- Trade-to-trade settlement applies from Stage II onward — no netting off is allowed
- Additional Surveillance Deposit (ASD) is mandatory for buyers from Stage II onward
- Price bands of 5% or lower apply across all GSM stages
- Trading frequency is restricted to once a week (every Monday or first trading day) from Stage III onward
- Stage IV additionally prohibits any upward price movement
- Members may refer to the GSM FAQ or write to bse.surv@bseindia.com for clarifications
Regulatory Changes
The GSM framework (originally published February 23, 2017) provides four escalating stages of surveillance intervention. This notice implements upgrades to higher stages for the listed securities, triggering stricter controls. Key references:
- Exchange notice no. 20170223-44 dated February 23, 2017
- Exchange notice no. 20170303-29 dated March 03, 2017
- Exchange notice no. 20180720-55 dated July 20, 2018
- Exchange notice no. 20191129-23 dated November 29, 2019
- Exchange notice no. 20231117-63 dated November 17, 2023
Compliance Requirements
| GSM Stage | Surveillance Actions |
|---|---|
| Stage I | 100% applicable margin rate; price band of 5% or lower |
| Stage II | Trade-to-trade; price band 5% or lower; ASD of 50% of trade value deposited by buyers |
| Stage III | Trade-to-trade; price band 5% or lower; trading once a week (Monday/1st trading day); ASD of 100% of trade value by buyers |
| Stage IV | Trade-to-trade; price band 5% or lower; trading once a week (Monday/1st trading day); ASD of 100% of trade value by buyers; no upward price movement permitted |
- Trading members must take adequate precautions when trading in affected securities
- Settlement shall be on a trade-to-trade basis with no netting off permitted (Stage II and above)
- Buyers must arrange for ASD deposits as applicable to the relevant GSM stage
Important Dates
- April 27, 2026: Notice date
- April 28, 2026: Effective date — securities moved to higher GSM stages
Impact Assessment
Affected securities face materially reduced liquidity and trading flexibility. Stage III and IV securities are particularly impacted, with trading restricted to once per week and full trade value deposits required from buyers, which significantly raises the cost and friction of transacting. The prohibition on upward price movement at Stage IV effectively caps gains for existing holders. Investors and traders holding or considering positions in these securities should review the Annexure carefully and assess exposure ahead of the April 28 effective date. The complete list of affected securities is available in the Annexure attached to the original notice.
Impact Justification
GSM stage upgrades impose significant trading restrictions on affected securities including trade-to-trade settlement, reduced price bands of 5% or lower, mandatory Additional Surveillance Deposits up to 100% of trade value, and weekly trading limits. This directly constrains liquidity and trading activity for impacted stocks.