Description

BSE updates surveillance measures for companies under Insolvency and Bankruptcy Code (IBC), including stage movements and consolidated list of affected securities.

Summary

BSE has issued surveillance measures for securities of companies under the Insolvency and Bankruptcy Code (IBC) effective October 13, 2025. The circular includes securities newly shortlisted under Stage 0 and Stage 1, stage movements between surveillance levels, and a consolidated list of all securities currently under IBC surveillance measures. Three securities are affected: one moving to Stage 0 (Steelco Gujarat Ltd), and two entering Stage 1 (Maxgrow India Ltd and Axis Solutions Ltd).

Key Points

  • Steelco Gujarat Ltd (500399) shortlisted in Stage 0 upon receipt of corporate announcement/disclosure
  • Maxgrow India Ltd (521167) and Axis Solutions Ltd (511144) shortlisted in Stage 1 Additional Surveillance Measure
  • No securities moving from Stage I to Stage II or vice versa
  • No securities to be excluded from ASM for IBC this period
  • Consolidated list includes 13 securities with their current IBC surveillance stages
  • T+0 scrips marked with ~ are shortlisted based on parent company status
  • Recommencement scrips marked with ^

Regulatory Changes

The surveillance framework for companies under IBC continues with staged measures:

  • Stage 0: Securities where corporate announcement/disclosure regarding insolvency has been received
  • Stage 1: Securities in Additional Surveillance Measure for companies in Insolvency Resolution Process (IRP)
  • Stage 2: Enhanced surveillance for continued IBC proceedings

Special marking conventions apply for T+0 scrips and recommencement scrips to provide additional transparency.

Compliance Requirements

  • Trading members must be aware of securities under IBC surveillance and their applicable stages
  • Enhanced due diligence required for securities in Stage 1 and Stage 2
  • Investors and brokers should note the surveillance stage markings when trading these securities
  • Special attention required for T+0 scrips shortlisted based on parent company IBC status

Important Dates

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

Impact Assessment

Market Impact: High - Securities under IBC surveillance face trading restrictions and increased scrutiny, which can significantly affect liquidity and price discovery. The addition of three securities to surveillance stages will impact investors holding these stocks.

Trading Impact: Securities in IBC surveillance typically experience reduced trading activity due to heightened risk perception and potential additional margin requirements. Stage movements signal progression or regression in insolvency proceedings.

Investor Impact: Investors in affected securities face increased uncertainty and potential capital loss. The surveillance measures serve as early warning indicators of financial distress requiring immediate portfolio review.

Operational Impact: Brokers and trading members must update their systems to reflect the surveillance stage classifications and ensure appropriate risk management protocols are applied to these securities.

Impact Justification

High importance due to IBC surveillance measures affecting multiple securities, with stage movements impacting trading conditions and investor decisions for companies under insolvency proceedings.