Description
BSE notifies trading members that certain securities will be moved to higher GSM stages effective April 30, 2026, attracting enhanced surveillance actions including trade-to-trade settlement, margin requirements, and Additional Surveillance Deposits.
Summary
BSE has issued Notice No. 20260429-26 informing trading members that certain securities (listed in the attached Annexure) will be moved to their respective higher Graded Surveillance Measure (GSM) stages effective April 30, 2026. The GSM framework was originally published on February 23, 2017, and has been updated through subsequent notices. Affected securities will attract enhanced surveillance actions depending on their assigned GSM stage.
Key Points
- Securities listed in the Annexure will be moved to higher GSM stages from April 30, 2026
- Four GSM stages exist, each with progressively stricter trading restrictions
- All affected securities will have a price band of 5% or lower
- Settlement for affected securities will be on a trade-to-trade basis (no netting off allowed)
- Trading members are urged to take adequate precautions while trading in these securities
- Queries can be directed to bse.surv@bseindia.com
Regulatory Changes
Securities are being escalated to higher GSM stages under the existing GSM Framework. The four-stage surveillance action framework is as follows:
| Stage | Surveillance Actions |
|---|---|
| I | Applicable margin rate of 100% and price band of 5% or lower |
| II | Trade-to-trade with 5% price band and Additional Surveillance Deposit (ASD) of 50% of trade value to be deposited by buyers |
| III | Trade-to-trade with 5% price band, trading permitted once a week (every Monday/1st trading day), ASD of 100% of trade value by buyers |
| IV | Trade-to-trade with 5% price band, trading once a week (every Monday/1st trading day), ASD of 100% of trade value by buyers, with no upward movement allowed |
Compliance Requirements
- Trading Members: Must note the securities listed in the Annexure and apply the corresponding GSM stage restrictions from April 30, 2026
- Buyers: Must deposit the applicable Additional Surveillance Deposit (ASD) — 50% of trade value for Stage II, 100% for Stages III and IV
- Settlement: No netting off is permitted; all trades must be settled on a trade-to-trade basis
- Members should refer to the GSM FAQ at: http://www.bseindia.com/markets/equity/EQReports/graded_surveil_measure.aspx?expandable=6
Important Dates
- April 29, 2026: Notice issued
- April 30, 2026: Effective date — securities moved to their respective higher GSM stages
Impact Assessment
The movement of securities to higher GSM stages significantly impacts their tradability and liquidity. Stage III and IV securities are restricted to once-a-week trading (Mondays), which severely limits exit opportunities for investors. The mandatory ASD requirement (up to 100% of trade value) increases the cost of buying these securities and discourages speculative activity. Stage IV additionally prohibits any upward price movement, effectively capping gains. These measures are designed to protect investors from potentially manipulated or fundamentally weak securities while signaling heightened regulatory scrutiny. Traders and investors holding or considering positions in the affected securities should review the Annexure carefully and reassess their exposure given these restrictions.
Impact Justification
Securities moving into GSM stages face severe trading restrictions including trade-to-trade settlement, 100% margins, weekly trading limits, and mandatory Additional Surveillance Deposits — directly impacting liquidity and tradability of affected stocks.