Description
BSE imposes GSM Stage IV-equivalent trading restrictions on securities shortlisted due to circulation of unsolicited videos and unusual price/volume movements on social media platforms, effective May 20-25, 2026.
Summary
BSE has issued an update under its Surveillance Action framework for securities linked to unsolicited videos and messages circulated on social media platforms. The action, referencing the original Exchange Notice No. 20230224-38 dated February 24, 2023, imposes GSM Stage IV-equivalent restrictions on newly shortlisted securities while also removing certain securities from the framework, both effective from May 20, 2026.
Key Points
- Securities shortlisted based on circulation of unsolicited social media videos and unusual price/volume movements
- Restrictions are equivalent to GSM Stage IV measures
- New securities added to the framework per Annexure I
- Securities in Annexure II will be removed from the framework effective May 20, 2026
- Shortlisting is purely for market surveillance purposes and should not be construed as adverse action against the company
- Framework operates in conjunction with all other prevailing surveillance measures
Regulatory Changes
The following GSM Stage IV-equivalent restrictions are imposed on newly shortlisted securities:
- Trade for Trade (T2T) Settlement: Price band of 5% or lower as applicable, effective May 20, 2026
- Weekly Trading Restriction: Trading permitted only once a week — every Monday or the 1st trading day of the week, effective May 25, 2026
- Additional Surveillance Deposit (ASD): 100% of trade value to be deposited by buyers with no upward price movement permitted, effective May 21, 2026
Compliance Requirements
- Trading Members: Must comply with Trade for Trade settlement and 5% price band restrictions from May 20, 2026
- Buyers: Must deposit ASD equivalent to 100% of trade value from May 21, 2026; no upward price movement permitted under ASD
- Trading Members: Must restrict trades to Mondays (or first trading day of the week) only from May 25, 2026
- Members may seek clarifications by writing to bse.surv@bseindia.com
Important Dates
| Date | Action |
|---|---|
| May 20, 2026 | Trade for Trade (T2T) with 5% price band effective; Annexure II securities exit framework |
| May 21, 2026 | ASD (100% of trade value) deposit requirement effective for buyers |
| May 25, 2026 | Weekly trading restriction (Mondays only) comes into effect |
Impact Assessment
This circular imposes severe trading restrictions that will significantly reduce liquidity in the affected securities. The combination of Trade for Trade settlement, weekly trading limits, and 100% ASD requirements effectively makes these stocks highly illiquid and unattractive for speculative activity — which is the regulatory intent. Investors holding these securities face limited exit options as trading is restricted to once per week. The removal of Annexure II securities provides relief for those stocks, restoring normal trading conditions. Market participants dealing in or holding securities listed in Annexure I should exercise caution and be aware of the settlement and deposit obligations before executing trades.
Impact Justification
Imposes severe GSM Stage IV-equivalent restrictions including trade-for-trade settlement, weekly trading limits, and 100% ASD deposit requirements on multiple securities, significantly curtailing liquidity and trading activity.