Description

BSE surveillance update on securities under Insolvency and Bankruptcy Code (IBC) proceedings, including stage movements and new additions effective October 13, 2025.

Summary

BSE has updated its surveillance measures for securities under the Insolvency and Bankruptcy Code (IBC) framework, effective October 13, 2025. The circular identifies securities at various stages of insolvency proceedings, including new additions to Stage 0 and Stage 1 surveillance. Steelco Gujarat Ltd has been added to Stage 0 (receipt of corporate announcement), while Maxgrow India Ltd and Axis Solutions Ltd have been shortlisted in Stage 1 Additional Surveillance Measure for companies in Insolvency Resolution Process (IRP).

Key Points

  • One security (Steelco Gujarat Ltd) added to Stage 0 surveillance effective October 13, 2025
  • Two securities (Maxgrow India Ltd, Axis Solutions Ltd) shortlisted in IBC Stage 1 surveillance
  • No securities moved from Stage I to Stage II or vice versa
  • No securities excluded from ASM framework in this update
  • Consolidated list includes multiple securities at various IBC stages including AGS Transact Technologies, Aban Offshore, Alchemist Ltd, and others
  • Stage 0 represents receipt of corporate announcement/disclosure regarding insolvency
  • Stage 1 represents Additional Surveillance Measure for companies in Insolvency Resolution Process

Regulatory Changes

The surveillance framework continues to implement the Additional Surveillance Measure (ASM) for companies under the Insolvency and Bankruptcy Code:

  • Stage 0: Securities where companies have disclosed corporate announcements regarding insolvency proceedings
  • Stage 1: Securities of companies actively under Insolvency Resolution Process (IRP)
  • Stage 2: Enhanced surveillance for companies progressing further in IBC proceedings

Special notations:

  • Securities marked with (~) are T+0 scrips shortlisted in IBC framework as per parent company
  • Securities marked with (^) are recommencement scrips
  • Securities marked with (*) are as per NSE

Compliance Requirements

For Investors:

  • Exercise caution when trading in securities under IBC surveillance
  • Understand the risks associated with securities in insolvency proceedings
  • Monitor stage movements as they indicate progression in insolvency cases

For Trading Members:

  • Apply appropriate risk controls for securities under ASM
  • Ensure clients are aware of surveillance status before trading
  • Follow enhanced due diligence procedures

For Listed Companies:

  • Companies must provide timely disclosures regarding IBC proceedings
  • Maintain transparency on insolvency status updates

Important Dates

  • Effective Date: October 13, 2025 - All surveillance measure changes take effect
  • Circular Date: October 10, 2025

Impact Assessment

Market Impact:

  • Securities under IBC surveillance typically face reduced liquidity and increased volatility
  • Additional margins and trading restrictions may apply
  • Investor confidence typically lower for securities in insolvency proceedings

Investor Impact:

  • High risk for existing shareholders of affected securities
  • Potential for significant capital loss depending on resolution outcomes
  • Limited exit opportunities due to reduced trading interest

Operational Impact:

  • Enhanced monitoring and reporting requirements for brokers
  • Additional compliance burden for surveillance systems
  • Increased scrutiny on price movements and trading patterns

Affected Securities Detail:

Stage 0 (New Addition):

  • Steelco Gujarat Ltd (Scrip Code: 500399, ISIN: INE629B01032) - Recommencement Scrip

Stage 1 (New Additions):

  • Maxgrow India Ltd (Scrip Code: 521167, ISIN: INE485D01043)
  • Axis Solutions Ltd (Scrip Code: 511144, ISIN: INE520G01024)

The consolidated list includes over 13 securities at various stages, indicating ongoing market-wide insolvency proceedings affecting multiple companies across sectors.

Impact Justification

High impact as securities under IBC surveillance face significant trading restrictions and investor risks. Direct effect on affected securities and their shareholders.