Description

BSE updates surveillance measures for companies under Insolvency and Bankruptcy Code (IBC), with Kobo Biotech Ltd moving to Stage 1 surveillance effective October 30, 2025.

Summary

BSE has updated its Additional Surveillance Measure (ASM) framework for securities of companies undergoing Insolvency Resolution Process (IRP) under the Insolvency and Bankruptcy Code (IBC). Effective October 30, 2025, Kobo Biotech Ltd (Scrip Code: 531541, ISIN: INE881A01015) has been placed in Stage 1 surveillance. The circular provides a consolidated list of securities currently under various stages of IBC surveillance, including Stage 0 (corporate announcement stage) and Stage 1 (active IRP).

Key Points

  • Kobo Biotech Ltd newly shortlisted in Stage 1 Additional Surveillance Measure for IBC
  • No securities added to Stage 0 (receipt of corporate announcement/disclosure)
  • No securities moved from Stage I to Stage II or vice versa
  • No securities excluded from ASM for IBC framework
  • Consolidated list includes 14+ companies under various IBC stages
  • Notable companies in Stage 0 include Aban Offshore Ltd, AGS Transact Technologies Ltd, Alchemist Ltd, Alps Industries Ltd, Ansal Properties & Infrastructure Ltd, and Arshiya Limited
  • Stage 1 companies include A.F. Enterprises Ltd, Axis Solutions Ltd, and newly added Kobo Biotech Ltd

Regulatory Changes

The surveillance framework continues BSE’s tiered approach to monitoring companies under IBC:

  • Stage 0: Securities where corporate announcement/disclosure has been received regarding insolvency proceedings
  • Stage 1: Securities where Insolvency Resolution Process has been formally initiated
  • Stage 2: Advanced stage of insolvency proceedings (no movements in this update)

The framework includes special notations for T+0 scrips (marked with ~) and recommencement scrips (marked with ^) that are shortlisted based on parent company status.

Compliance Requirements

  • Trading members must be aware of enhanced surveillance measures applicable to listed securities
  • Securities under IBC surveillance may face additional trading restrictions or monitoring
  • Market participants should exercise caution when trading in securities under ASM-IBC framework
  • Companies must comply with disclosure requirements regarding insolvency proceedings

Important Dates

  • Effective Date: October 30, 2025 - All surveillance changes take effect
  • Circular Date: October 29, 2025

Impact Assessment

Market Impact: Medium - The addition of one security to Stage 1 has limited immediate market impact, but investors in Kobo Biotech Ltd should be aware of heightened surveillance and potential trading restrictions.

Investor Impact: Investors holding securities under IBC surveillance face increased uncertainty and potential liquidity constraints. The consolidated list of 14+ companies across various stages indicates ongoing monitoring of stressed assets in the market.

Operational Impact: Trading members need to ensure their surveillance systems account for these changes. The IBC framework provides transparency on companies undergoing insolvency proceedings, helping market participants make informed decisions.

Systemic Significance: The maintenance of a comprehensive IBC surveillance list demonstrates BSE’s proactive approach to risk management and investor protection during corporate insolvency proceedings.

Impact Justification

Affects trading surveillance for one company (Kobo Biotech) entering IBC Stage 1, with comprehensive consolidated list showing multiple companies under various IBC stages