Description
BSE updates surveillance measures for companies under Insolvency and Bankruptcy Code (IBC), including stage movements and new additions to monitoring framework effective November 04, 2025.
Summary
BSE has issued updated surveillance measures for securities of companies under the Insolvency and Bankruptcy Code (IBC) framework, effective November 04, 2025. The circular identifies companies at different stages of the insolvency resolution process, with Radhagobind Commercial Ltd entering Stage 0 (corporate announcement received) and East India Drums and Barrels Manufacturing Ltd moving to Stage 1 (Additional Surveillance Measure). The framework provides a consolidated list of securities currently under various stages of IBC-related surveillance.
Key Points
- Radhagobind Commercial Ltd (Scrip Code: 539673, ISIN: INE792P01020) shortlisted at Stage 0 w.e.f. November 04, 2025
- East India Drums and Barrels Manufacturing Ltd (Scrip Code: 523874, ISIN: INE191C01023) moved to Stage 1 w.e.f. November 04, 2025
- No securities moved from Stage I to Stage II or Stage II to Stage I during this update
- No securities excluded from IBC surveillance framework in this update
- Consolidated list includes 13+ companies across different IBC stages, including A.F. Enterprises, Aban Offshore, AGS Transact Technologies, Alchemist, Alps Industries, Ambition Mica, Ankit Metal & Power, Ansal Properties & Infrastructure, Arshiya Limited, Axis Solutions, Baron Infotech, Birla Cotsyn, and Bloom Dekor
- Special notation for T+0 scrips and recommencement scrips in the surveillance framework
Regulatory Changes
The surveillance framework for IBC companies operates in stages:
- Stage 0: Receipt of corporate announcement/disclosure from the company regarding insolvency proceedings
- Stage 1: Additional Surveillance Measure (ASM) for companies in Insolvency Resolution Process (IRP)
- Stage 2: Enhanced surveillance measures for continued insolvency proceedings
Securities can move between stages based on developments in insolvency proceedings or be excluded upon resolution.
Compliance Requirements
- Market participants must be aware of securities under IBC surveillance stages
- Trading in these securities may be subject to additional restrictions and monitoring
- Investors should exercise enhanced due diligence when trading securities under IBC framework
- Stock exchanges will apply appropriate surveillance measures based on the stage classification
- Companies marked with special symbols (~ for T+0 scrips, ^ for recommencement scrips) require additional attention
Important Dates
- Effective Date: November 04, 2025 - Implementation of updated surveillance measures
- Circular Date: November 03, 2025 - Date of circular issuance
Impact Assessment
Market Impact: High - The IBC surveillance framework significantly affects liquidity and trading activity in listed securities. Companies under insolvency proceedings face heightened scrutiny, potentially leading to reduced investor interest and trading volumes.
Investor Protection: The staged surveillance approach provides graduated warnings to investors about the financial distress level of companies, enabling informed investment decisions.
Operational Impact: Brokers and market participants must update their surveillance systems to reflect the stage changes and ensure appropriate risk disclosures to clients trading these securities.
Corporate Impact: Companies in Stage 0 face reputational concerns and potential trading restrictions, while those in Stage 1 experience enhanced surveillance that may limit market activity until resolution or liquidation occurs.
Impact Justification
High importance and impact as this affects trading surveillance for companies under insolvency proceedings, impacting investor protection and market integrity for multiple securities.