Description
BSE updates surveillance measures for securities under Insolvency and Bankruptcy Code (IBC), including Ortel Communications Ltd moving to Stage 1 and Goenka Diamond & Jewels Ltd being excluded from ASM.
Summary
BSE has issued updated surveillance measures for securities under the Insolvency and Bankruptcy Code (IBC) framework effective December 16, 2025. The circular details securities moving between different surveillance stages, with Ortel Communications Ltd (Scrip Code: 539015, ISIN: INE849L01019) being placed in Additional Surveillance Measure Stage 1 for companies relating to Insolvency Resolution Process. Additionally, Goenka Diamond & Jewels Ltd (Scrip Code: 533189, ISIN: INE516K01024) is being excluded from ASM under IBC. The circular also provides a consolidated list of 14+ securities currently under various IBC surveillance stages.
Key Points
- Ortel Communications Ltd (539015) added to Additional Surveillance Measure Stage 1 under IBC framework effective December 16, 2025
- Goenka Diamond & Jewels Ltd (533189) to be excluded from ASM for Companies under IBC effective December 16, 2025
- No securities are moving from Stage 0 (Receipt of corporate announcement/disclosure) in this update
- No securities are moving between Stage 1 and Stage 2 in either direction
- Consolidated list includes securities at various stages including Stage 0 (announcement receipt) and Stage 1 (active surveillance)
- Framework includes special markings for T+0 scrips and recommencement scrips
- Surveillance measures align with NSE framework
Regulatory Changes
The surveillance framework for securities under IBC continues to operate in stages:
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 Insolvency and Bankruptcy Code
Stage 2: Enhanced surveillance with additional restrictions
Securities can move between stages based on developments in insolvency proceedings. The framework provides investor protection by flagging securities of companies undergoing insolvency resolution.
Compliance Requirements
- Trading members must be aware of securities under IBC surveillance and inform clients about associated risks
- Enhanced due diligence required for transactions in securities listed under IBC framework
- Market participants should monitor the consolidated list of securities under various IBC stages
- Securities marked with special symbols (~ for T+0 scrips, ^ for recommencement scrips) require additional attention
- Investors must exercise caution when trading securities under IBC surveillance measures
Important Dates
- December 16, 2025: Effective date for Ortel Communications Ltd placement in Stage 1
- December 16, 2025: Effective date for Goenka Diamond & Jewels Ltd exclusion from ASM
- December 15, 2025: Circular issuance date
Impact Assessment
Market Impact: High - The surveillance framework directly affects trading in securities of companies under insolvency proceedings, potentially impacting liquidity and investor sentiment for affected scrips.
Investor Protection: This measure enhances investor awareness about companies undergoing insolvency proceedings, allowing for informed decision-making.
Trading Implications: Securities under IBC surveillance may face additional restrictions, reduced liquidity, and heightened volatility. The exclusion of Goenka Diamond & Jewels Ltd suggests resolution or improvement in its insolvency status.
Operational Impact: Trading members and market participants must maintain updated systems to track and flag securities under various IBC stages.
Broader Context: The consolidated list shows 14+ securities under various stages of IBC surveillance, indicating ongoing monitoring of companies in financial distress across the market.
Impact Justification
High ranking due to surveillance measures affecting securities under insolvency proceedings, with direct trading implications for affected companies and investor protection concerns.