Description

BSE adds three securities (Steelco Gujarat Ltd, String Metaverse Ltd, and Vas Infrastructure Ltd) to Stage 1 of Additional Surveillance Measure under Insolvency and Bankruptcy Code framework effective October 24, 2025.

Summary

BSE has updated the surveillance framework for securities under the Insolvency and Bankruptcy Code (IBC). Three securities have been shortlisted and added to Stage 1 of Additional Surveillance Measure for Companies relating to the Insolvency Resolution Process (IRP). No securities are being moved to Stage 0, moved between stages, or excluded from the framework. The changes are effective from October 24, 2025.

Key Points

  • Three securities added to IBC Stage 1: Steelco Gujarat Ltd (500399), String Metaverse Ltd (534535), and Vas Infrastructure Ltd (531574)
  • No securities added to Stage 0 (Receipt of corporate announcement/disclosure)
  • No securities moving from Stage I to Stage II
  • No securities moving from Stage II to Stage I
  • No securities being excluded from the IBC surveillance framework
  • Consolidated list shows 13+ securities under various stages of IBC surveillance
  • Framework includes special markings for T+0 scrips and recommencement scrips

Regulatory Changes

The surveillance framework under IBC continues to operate with the following stages:

  • Stage 0: Receipt of corporate announcement/disclosure from the company regarding insolvency
  • Stage 1: Additional Surveillance Measure for Companies relating to Insolvency Resolution Process (IRP)
  • Stage 2: Enhanced surveillance for companies under IBC

Securities can move between stages based on the progression or resolution of insolvency proceedings.

Compliance Requirements

  • Trading members must be aware of securities under IBC surveillance framework
  • Enhanced due diligence required for trading in Stage 1 securities
  • Investors should note the heightened risk associated with securities under insolvency proceedings
  • Special attention required for securities marked with special indicators (T+0 scrips, recommencement scrips)

Important Dates

  • Effective Date: October 24, 2025 - Three securities enter Stage 1 of IBC surveillance framework

Impact Assessment

Securities Added to Stage 1:

  1. Steelco Gujarat Ltd (Scrip Code: 500399, ISIN: INE629B01032)
  2. String Metaverse Ltd (Scrip Code: 534535, ISIN: INE958L01026)
  3. Vas Infrastructure Ltd (Scrip Code: 531574, ISIN: INE192C01013)

Market Impact:

  • Placement in IBC Stage 1 indicates these companies are undergoing insolvency resolution process
  • Trading in these securities may face additional restrictions and surveillance measures
  • Increased volatility and liquidity constraints expected
  • Higher risk profile for investors holding or considering these securities
  • Price discovery may be affected due to surveillance measures

Investor Impact:

  • Significant credit and operational risk for shareholders of the three affected companies
  • Limited ability to exit positions due to potential trading restrictions
  • Uncertainty regarding recovery value and timeline
  • Need for continuous monitoring of corporate announcements

Consolidated Framework: The circular also provides a consolidated list showing at least 13 securities currently under IBC surveillance, including companies like Aban Offshore Ltd, AGS Transact Technologies Ltd, Alchemist Ltd, and others at various stages, indicating widespread applicability of the insolvency framework across multiple listed entities.

Impact Justification

Addition of securities to IBC surveillance framework indicates insolvency proceedings, significantly impacting trading conditions and investor risk for these specific securities.