Description

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

Summary

BSE has issued updated surveillance measures for securities under the Insolvency and Bankruptcy Code (IBC) framework effective October 30, 2025. Kobo Biotech Ltd (Scrip Code: 531541, ISIN: INE881A01015) has been moved 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 from Stage I to Stage II, moved from Stage II to Stage I, or excluded from ASM measures in this update.

Key Points

  • One security added to IBC Stage 1 surveillance: Kobo Biotech Ltd
  • No new securities added to Stage 0 (Receipt of corporate announcement/disclosure)
  • No movements between Stage I and Stage II
  • No securities excluded from IBC surveillance framework
  • Effective date: October 30, 2025
  • Consolidated list includes 14+ securities under various IBC stages

Regulatory Changes

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

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

Securities under this framework face trading restrictions and enhanced monitoring.

Compliance Requirements

  • Trading members must note the surveillance stage classification for affected securities
  • Enhanced due diligence required for transactions in securities under IBC surveillance
  • Investors should be aware of the insolvency status and associated risks
  • Special notations apply: T+0 scrips marked with ~, Recommencement scrips marked with ^
  • Alignment with NSE surveillance measures indicated by (*) notation

Important Dates

  • Effective Date: October 30, 2025 - Kobo Biotech Ltd enters Stage 1 surveillance
  • Circular Date: October 29, 2025

Impact Assessment

Trading Impact: Securities under IBC surveillance face restricted trading conditions, reduced liquidity, and mandatory additional disclosures. Stage 1 classification indicates formal insolvency resolution process initiation.

Investor Impact: High risk for investors holding Kobo Biotech Ltd shares. IBC Stage 1 indicates the company is undergoing insolvency resolution, with significant uncertainty regarding recovery and business continuity.

Market Impact: Limited broader market impact as only one security added. However, the consolidated list shows 14+ companies under various IBC stages, indicating ongoing corporate distress monitoring by the exchange.

Consolidated List Highlights

The annexure includes notable companies under IBC surveillance:

  • A.F. Enterprises Ltd (Stage 1)
  • Aban Offshore Ltd (Stage 0)
  • AGS Transact Technologies Ltd (Stage 0)
  • Alchemist Ltd (Stage 0)
  • Alps Industries Ltd (Stage 0)
  • Ansal Properties & Infrastructure Ltd (Stage 0)
  • Arshiya Limited (Stage 0)
  • Multiple other companies at various surveillance stages

Impact Justification

IBC surveillance measures significantly restrict trading and indicate serious financial distress for affected companies