Description

BSE updates surveillance measures for securities under Insolvency and Bankruptcy Code with stage changes and consolidated listing effective August 12, 2025.

Summary

BSE has issued surveillance measures for securities under the Insolvency and Bankruptcy Code (IBC) effective August 12, 2025. The circular includes stage transitions for companies in insolvency resolution processes and provides a consolidated list of all securities currently under various IBC surveillance stages.

Key Points

  • Two securities moved to Stage 1 surveillance: East India Drums and Barrels Manufacturing Ltd (523874) and Vas Infrastructure Ltd (531574)
  • No securities moved to Stage 0, Stage II, or were excluded from surveillance
  • Consolidated list includes 13+ securities across different IBC surveillance stages
  • T+0 scrips are specifically marked with ~ symbol when shortlisted under parent company IBC framework

Regulatory Changes

  • Implementation of staged surveillance approach for IBC companies
  • Stage 0: Receipt of corporate announcement/disclosure from company
  • Stage 1: Additional Surveillance Measure for companies in Insolvency Resolution Process
  • Stage 2: Enhanced surveillance measures (higher stage)

Compliance Requirements

  • Companies under IBC surveillance must comply with enhanced disclosure requirements
  • Trading restrictions may apply based on surveillance stage
  • Investors should be aware of heightened risks associated with securities under IBC proceedings

Important Dates

  • Effective Date: August 12, 2025
  • All surveillance measure changes take effect from market opening on this date

Impact Assessment

  • Trading Impact: Enhanced surveillance may result in increased volatility monitoring and potential trading restrictions
  • Investor Risk: Securities under IBC surveillance carry elevated investment risks due to insolvency proceedings
  • Market Monitoring: BSE will maintain closer oversight of price movements and trading patterns in affected securities
  • Liquidity Considerations: Some securities may experience reduced liquidity due to surveillance measures

Impact Justification

Regular surveillance measure updates affecting multiple securities under insolvency proceedings