Description
BSE announces securities being moved to higher GSM stages effective May 11, 2026, with enhanced surveillance actions including trade-to-trade settlement, price bands of 5% or lower, and Additional Surveillance Deposits.
Summary
BSE is moving a list of securities (per attached Annexure) to higher stages of the Graded Surveillance Measure (GSM) framework with effect from May 11, 2026. This action is taken under the GSM Framework published on February 23, 2017, and subsequent notices. Affected securities will attract increasingly stringent surveillance actions depending on the GSM stage they are moved to.
Key Points
- Securities will be moved to their respective higher GSM stages effective May 11, 2026
- The list of affected securities is provided in the attached Annexure
- Four GSM stages apply, each with progressively stricter trading restrictions
- No netting off is permitted; settlement will be on a trade-to-trade basis
- Trading members are advised to take adequate precautions while trading in affected securities
- For clarifications, members may refer to the BSE FAQ or write to bse.surv@bseindia.com
Regulatory Changes
The GSM framework (originally published February 23, 2017, with subsequent amendments on March 3, 2017, July 20, 2018, November 29, 2019, and November 17, 2023) provides for escalating surveillance stages. Securities on the Annexure are being escalated to higher stages based on surveillance assessments.
GSM Stage Actions:
| Stage | Surveillance Actions |
|---|---|
| I | 100% applicable margin rate; price band of 5% or lower |
| II | Trade-to-trade; price band of 5% or lower; Additional Surveillance Deposit (ASD) of 50% of trade value by buyers |
| III | Trade-to-trade; price band of 5% or lower; trading permitted once a week (every Monday/1st trading day); ASD of 100% of trade value by buyers |
| IV | Trade-to-trade; price band of 5% or lower; trading permitted once a week (every Monday/1st trading day); ASD of 100% of trade value by buyers; no upward price movement allowed |
Compliance Requirements
- Trading Members: Must note the revised GSM stage classifications for all securities listed in the Annexure
- Buyers: Must deposit the applicable Additional Surveillance Deposit (ASD) — 50% of trade value for Stage II, 100% for Stages III and IV
- All Participants: Must comply with trade-to-trade settlement for Stages II–IV (no netting off permitted)
- Weekly Trading Restriction: For Stages III and IV, trading is only permitted once a week on Mondays or the first trading day of the week
Important Dates
- Circular Date: May 8, 2026
- Effective Date: May 11, 2026 (securities moved to higher GSM stages)
Impact Assessment
Affected securities will experience significantly reduced liquidity and trading flexibility. Stage III and IV securities are particularly impacted — restricted to once-a-week trading with full 100% ASD requirements. Stage IV securities additionally face a no-upward-movement restriction, effectively capping potential gains. Investors and traders holding these securities should be aware of the increased settlement obligations and restricted trading windows. The trade-to-trade mechanism eliminates intraday netting, increasing capital requirements for participants. The full list of affected tickers is available in the Annexure attached to the original PDF notice.
Impact Justification
Securities moved to higher GSM stages face severe trading restrictions including trade-to-trade settlement, 5% price bands, and mandatory Additional Surveillance Deposits up to 100% of trade value, significantly impacting liquidity and trading activity.