Description

BSE updates surveillance measures for companies under IBC proceedings, including stage transitions and new inclusions in Additional Surveillance Measure framework effective November 13, 2025.

Summary

BSE has updated the surveillance framework for securities of companies undergoing Insolvency Resolution Process (IRP) under the Insolvency and Bankruptcy Code (IBC). The circular details stage transitions effective November 13, 2025, including one security (SAB Events & Governance Now Media Ltd) moving to Stage 0 upon receipt of corporate announcement, and one security (A.F. Enterprises Ltd) entering Stage 1 of Additional Surveillance Measure. No securities are transitioning between Stage I and Stage II, and no securities are being excluded from the IBC surveillance framework.

Key Points

  • SAB Events & Governance Now Media Ltd (Scrip Code: 540081, ISIN: INE860T01019) shortlisted at Stage 0 w.e.f. November 13, 2025 due to receipt of corporate announcement/disclosure
  • A.F. Enterprises Ltd (Scrip Code: 538351, ISIN: INE663P01015) shortlisted in Stage 1 of Additional Surveillance Measure for IRP under IBC w.e.f. November 13, 2025
  • No securities moving from Stage I to Stage II
  • No securities moving from Stage II to Stage I
  • No securities being excluded from IBC surveillance framework
  • Consolidated list includes 14+ companies across various IBC stages (partial list provided in source)
  • Special markings: (*) indicates NSE alignment, (~) indicates T+0 scrips shortlisted per parent company, (^) indicates recommencement scrips

Regulatory Changes

The surveillance framework continues to apply staged restrictions based on companies’ status under IBC proceedings:

  • Stage 0: Securities where corporate announcement/disclosure regarding insolvency has been received from the company
  • Stage 1: Securities in Additional Surveillance Measure for companies in Insolvency Resolution Process under IBC
  • Stage 2: Enhanced surveillance for companies with prolonged IBC proceedings

The framework ensures coordinated surveillance between BSE and NSE for affected securities.

Compliance Requirements

  • Trading members must be aware of securities under IBC surveillance framework and associated trading restrictions
  • Investors should note that securities under IBC stages may have additional margin requirements, price bands, or circuit filters
  • Market participants must monitor corporate announcements from listed companies regarding insolvency proceedings
  • Brokers should inform clients about the surveillance status of securities they hold or intend to trade

Important Dates

  • Effective Date: November 13, 2025 - All stage transitions and new inclusions become applicable
  • Circular Date: November 12, 2025

Impact Assessment

Trading Impact: Securities entering or remaining in IBC surveillance stages face restricted trading conditions including potential price-to-price delivery requirements, reduced liquidity, and enhanced margin obligations. This significantly affects investor ability to enter or exit positions.

Investor Impact: High risk for existing shareholders as companies under IBC proceedings face uncertain resolution outcomes. Securities may experience high volatility and limited liquidity during insolvency resolution process.

Market Impact: The surveillance framework protects market integrity by clearly identifying securities of companies in financial distress, enabling informed investment decisions and preventing manipulation in distressed securities.

Liquidity Impact: Securities under surveillance typically experience reduced trading volumes and wider bid-ask spreads, making position liquidation challenging for investors.

Impact Justification

High severity due to trading restrictions on securities under insolvency proceedings. Affects investor trading ability and liquidity for impacted stocks. Critical information for traders and investors holding these securities.