Description

BSE updates on securities under Insolvency and Bankruptcy Code surveillance framework, including new additions to Stage 0 and Stage 1, effective November 4, 2025.

Summary

BSE has updated its surveillance framework for securities under the Insolvency and Bankruptcy Code (IBC). Effective November 4, 2025, Radhagobind Commercial Ltd has been added to Stage 0 (Receipt of corporate announcement/disclosure), and East India Drums and Barrels Manufacturing Ltd has been moved to Stage 1 (Additional Surveillance Measure for IRP). No securities are moving between Stage 1 and Stage 2, and no securities are being excluded from the framework.

Key Points

  • 1 security added to Stage 0: Radhagobind Commercial Ltd (Scrip Code: 539673, ISIN: INE792P01020) - marked as recommencement scrip
  • 1 security moved to Stage 1: East India Drums and Barrels Manufacturing Ltd (Scrip Code: 523874, ISIN: INE191C01023)
  • No securities moving from Stage 1 to Stage 2
  • No securities moving from Stage 2 to Stage 1
  • No securities excluded from IBC surveillance framework
  • Consolidated list maintains surveillance on 13+ securities under various IBC stages

Regulatory Changes

The circular implements BSE’s Additional Surveillance Measure (ASM) framework for companies undergoing Insolvency Resolution Process (IRP) under the Insolvency and Bankruptcy Code. The framework includes:

  • Stage 0: Receipt of corporate announcement/disclosure from the company regarding insolvency proceedings
  • Stage 1: Active surveillance for companies in Insolvency Resolution Process
  • Stage 2: Enhanced surveillance measures

Special markings include:

  • (^) denotes Recommencement Scrips
  • (~) denotes T+0 Scrips shortlisted in IBC Framework as per parent company
  • (*) denotes securities aligned with NSE surveillance

Compliance Requirements

  • Trading members must be aware of securities under IBC surveillance and associated risks
  • Enhanced due diligence required for transactions in Stage 1 and Stage 2 securities
  • Investors should note that securities under IBC surveillance carry significantly higher risk due to ongoing insolvency proceedings
  • Market participants must monitor corporate announcements for securities in Stage 0

Important Dates

  • Effective Date: November 4, 2025 - Implementation of updated surveillance measures for all listed securities
  • Circular Date: November 3, 2025

Impact Assessment

Market Impact: High - Securities under IBC surveillance face trading restrictions and heightened volatility. The addition of new securities to the surveillance framework alerts investors to companies facing financial distress and potential delisting risks.

Investor Impact: Critical for shareholders of Radhagobind Commercial Ltd and East India Drums and Barrels Manufacturing Ltd, as surveillance measures may include price bands, trade-for-trade settlement, or other restrictions that affect liquidity.

Operational Impact: Trading members must update their systems to reflect the surveillance status of these securities and ensure appropriate risk disclosures to clients. The consolidated list shows ongoing monitoring of multiple securities across different insolvency stages, indicating systemic surveillance of distressed companies.

Impact Justification

Securities under IBC surveillance face significant trading restrictions and investor risks due to insolvency proceedings, warranting high importance and impact rankings.