Description

BSE updates surveillance measures for companies under Insolvency and Bankruptcy Code (IBC), adding Carnation Industries Ltd to Stage 1 ASM effective October 15, 2025.

Summary

BSE has issued an update on surveillance measures for securities of companies undergoing Insolvency Resolution Process (IRP) under the Insolvency and Bankruptcy Code (IBC). Effective October 15, 2025, Carnation Industries Ltd (Scrip Code: 530609, ISIN: INE081B01028) has been added to Stage 1 of Additional Surveillance Measure. No securities are being moved to Stage 0, between stages, or excluded from ASM framework.

Key Points

  • Carnation Industries Ltd added to IBC Stage 1 surveillance effective October 15, 2025
  • No securities added to Stage 0 (Receipt of corporate announcement/disclosure)
  • No securities moved from Stage 1 to Stage 2 or Stage 2 to Stage 1
  • No securities excluded from ASM for IBC framework
  • Consolidated list includes 14+ securities across various IBC stages (partial list provided in annexure)

Regulatory Changes

The surveillance framework continues to operate under existing IBC guidelines with staged surveillance measures:

  • Stage 0: Receipt of corporate announcement/disclosure from the company
  • Stage 1: Additional Surveillance Measure for companies in Insolvency Resolution Process
  • Stage 2: Higher level of surveillance for IBC companies

Special notations apply:

  • (*) indicates securities as per NSE
  • (~) denotes T+0 scrips shortlisted in IBC framework as per parent company
  • (^) marks recommencement scrips

Compliance Requirements

  • Trading members must note the updated surveillance status of Carnation Industries Ltd
  • Enhanced due diligence required for transactions in securities under IBC surveillance
  • Investors should be aware of heightened risks associated with securities under insolvency proceedings
  • Market participants must follow ASM framework guidelines for affected securities

Important Dates

  • Effective Date: October 15, 2025 - Carnation Industries Ltd moves to IBC Stage 1
  • Circular Date: October 14, 2025

Impact Assessment

Trading Impact: Carnation Industries Ltd will face additional surveillance measures including potential price bands, trading restrictions, or enhanced margin requirements under Stage 1 ASM framework.

Investor Impact: Investors holding or trading Carnation Industries Ltd should exercise increased caution due to the company’s insolvency proceedings. The stock may experience reduced liquidity and higher volatility.

Market Impact: Limited broader market impact as only one security is being added to surveillance. The consolidated list shows multiple securities already under IBC surveillance across various stages, indicating this is part of ongoing regulatory oversight of companies in financial distress.

Impact Justification

Addition of one security to IBC Stage 1 surveillance affects trading in that specific stock but has limited broader market impact. Important for investors in Carnation Industries Ltd.