Description

BSE announces securities moving to higher GSM stages effective May 5, 2026, with enhanced surveillance actions including 100% margins, trade-to-trade settlement, and Additional Surveillance Deposits for buyers.

Summary

BSE has announced that certain securities (listed in the attached Annexure) will be moved to higher stages of the Graded Surveillance Measure (GSM) framework effective May 05, 2026. The GSM framework imposes progressively stricter surveillance actions on securities exhibiting abnormal price or volume movements, ranging from enhanced margins at Stage I to severely restricted weekly trading with full Additional Surveillance Deposits at Stage IV.

Key Points

  • Securities as per the attached Annexure will move to their respective higher GSM stages from May 05, 2026
  • Four stages of surveillance exist, each with progressively stricter restrictions
  • Stage I: 100% applicable margin rate with price band of 5% or lower
  • Stage II: Trade-to-trade settlement with 5% price band and 50% Additional Surveillance Deposit (ASD) by buyers
  • Stage III: Trade-to-trade, weekly trading (Mondays only), and 100% ASD by buyers
  • Stage IV: Trade-to-trade, weekly trading (Mondays only), 100% ASD by buyers, and no upward price movement permitted
  • No netting off is allowed; settlement is strictly on trade-to-trade basis
  • Trading members are advised to take adequate precautions while trading in these securities

Regulatory Changes

This notice is issued with reference to prior GSM framework notices:

  • Exchange Notice No. 20170223-44 dated February 23, 2017 (original GSM framework)
  • 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

No new framework changes are introduced; this is a periodic update moving specific securities into applicable GSM stages under the existing framework.

Compliance Requirements

  • Trading members must note the securities listed in the Annexure and apply the corresponding GSM stage restrictions from May 05, 2026
  • 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
  • No netting off is permitted; all settlements must be done 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 for clarifications
  • Queries may be directed to bse.surv@bseindia.com

Important Dates

  • Notice Date: May 04, 2026
  • Effective Date: May 05, 2026 — GSM stage movements become effective for all listed securities in the Annexure

Impact Assessment

Securities moved into higher GSM stages face significantly reduced liquidity and increased trading costs. Stage III and IV securities are particularly impacted, as trading is restricted to once per week (every Monday or the first trading day of the week), making it extremely difficult for investors to exit positions. The mandatory Additional Surveillance Deposit requirement (up to 100% of trade value) substantially increases the capital requirement for buyers, further dampening demand. Stage IV securities additionally face a hard cap on upward price movement, which effectively prevents price appreciation. Retail investors holding these securities should be aware of the heightened restrictions and plan their investment decisions accordingly.

Impact Justification

GSM stage movements impose severe trading restrictions including 100% margins, trade-to-trade settlement, weekly trading limits, and mandatory Additional Surveillance Deposits, significantly restricting liquidity and increasing cost of trading in affected securities.