Description

BSE updates surveillance measures for companies under Insolvency and Bankruptcy Code (IBC). Ortel Communications Ltd added to Stage 1 ASM, while Goenka Diamond & Jewels Ltd excluded from IBC framework effective December 16, 2025.

Summary

BSE has updated its Additional Surveillance Measure (ASM) framework for companies undergoing Insolvency Resolution Process (IRP) under the Insolvency and Bankruptcy Code (IBC), effective December 16, 2025. Ortel Communications Ltd (Scrip Code: 539015, ISIN: INE849L01019) has been added to Stage 1 of the IBC surveillance framework. Conversely, Goenka Diamond & Jewels Ltd (Scrip Code: 533189, ISIN: INE516K01024) has been excluded from the ASM-IBC framework entirely.

Key Points

  • Ortel Communications Ltd shortlisted in Stage 1 Additional Surveillance Measure for IRP under IBC
  • Goenka Diamond & Jewels Ltd excluded from ASM-IBC framework
  • No securities moved to Stage 0 (receipt of corporate announcement/disclosure)
  • No securities transitioned between Stage 1 and Stage 2
  • Consolidated list includes 14+ companies across various IBC stages (Stage 0, Stage 1, and corporate announcement stage)
  • Notable companies in framework include Aban Offshore Ltd, AGS Transact Technologies Ltd, Alchemist Ltd, Ansal Properties & Infrastructure Ltd, and Arshiya Limited

Regulatory Changes

The circular updates the ASM framework for securities under IBC:

  • Stage 0: Receipt of corporate announcement/disclosure from company regarding insolvency proceedings
  • Stage 1: Additional Surveillance Measure for companies in IRP under IBC with enhanced trading restrictions
  • Stage 2: Further escalated surveillance measures for continued insolvency proceedings

Companies are monitored and moved between stages based on insolvency resolution progress or corporate disclosures.

Compliance Requirements

  • Trading members must be aware of securities under IBC surveillance framework
  • Enhanced due diligence required for transactions in Stage 1 and Stage 2 securities
  • Investors should note the additional surveillance status when trading these securities
  • Market participants must comply with any additional margin or trading restrictions applicable to IBC securities

Important Dates

  • Effective Date: December 16, 2025 - All surveillance measure changes become effective

Impact Assessment

High Impact: Addition to IBC surveillance framework indicates serious financial distress and ongoing insolvency proceedings. For Ortel Communications Ltd, Stage 1 classification will result in:

  • Increased scrutiny from market participants and regulators
  • Potential additional trading restrictions including higher margins
  • Reduced liquidity as investors may avoid securities under insolvency proceedings
  • Negative signal to market about company’s financial health
  • Possible price volatility and pressure

Positive Development: Exclusion of Goenka Diamond & Jewels Ltd from the framework suggests successful resolution of insolvency proceedings or withdrawal from IBC process, potentially allowing normal trading conditions to resume.

The consolidated list reveals significant number of companies remain under various stages of IBC surveillance, indicating ongoing financial stress in certain market segments.

Impact Justification

Addition to IBC surveillance framework significantly restricts trading and signals severe financial distress for affected companies. Exclusion from framework indicates resolution or improved status.