Description

BSE imposes GSM Stage IV-equivalent restrictions on securities shortlisted due to circulation of unsolicited videos and unusual price/volume movements on social media platforms, effective May 2026.

Summary

BSE has updated its Surveillance Action framework targeting securities associated with unsolicited videos and messages circulated on social media platforms. Securities shortlisted based on video circulation, unusual price/volume movements, and other surveillance factors will face GSM Stage IV-equivalent restrictions. A separate set of securities will simultaneously exit this framework.

Key Points

  • Restrictions apply to securities shortlisted due to social media video circulation and unusual price/volume activity
  • Actions imposed are equivalent to GSM Stage IV
  • Securities listed in Annexure II will exit the framework effective May 05, 2026
  • Framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely a market surveillance action and should not be construed as adverse action against the company

Regulatory Changes

The following GSM Stage IV-equivalent measures are imposed on newly shortlisted securities:

  • Trade for Trade settlement with a price band of 5% or lower (as applicable), effective May 05, 2026
  • Weekly trading restriction: Trading permitted only once a week (every Monday or first trading day of the week), effective May 11, 2026
  • Additional Surveillance Deposit (ASD): 100% of trade value to be deposited by buyers with no upward price movement permitted, effective May 06, 2026

Compliance Requirements

  • Trading members must comply with trade-for-trade settlement for shortlisted securities from May 05, 2026
  • Buyers in shortlisted securities must deposit 100% ASD of trade value from May 06, 2026
  • Trading in shortlisted securities is restricted to once per week (Mondays/first trading day) from May 11, 2026
  • Members may refer to Annexure I for the list of newly shortlisted securities and Annexure II for securities exiting the framework
  • For clarifications, members may contact bse.surv@bseindia.com

Important Dates

  • May 05, 2026: Trade-for-trade with 5% price band effective; Annexure II securities exit the framework
  • May 06, 2026: 100% ASD deposit requirement effective for buyers with no upward movement
  • May 11, 2026: Weekly trading restriction (Mondays only) comes into effect

Impact Assessment

The restrictions significantly curtail trading activity for affected securities, mirroring the most restrictive tier of the GSM framework. The 100% ASD requirement eliminates leveraged buying, the weekly trading cap severely reduces liquidity, and the trade-for-trade settlement removes netting benefits for members. These combined measures effectively deter speculative activity in securities suspected of being manipulated via social media campaigns. Securities exiting the framework (Annexure II) will see improved trading conditions.

Impact Justification

Imposes severe trading restrictions equivalent to GSM Stage IV including trade-for-trade settlement, weekly trading limits, and 100% ASD deposit requirement on shortlisted securities, significantly curtailing liquidity and trading activity.