Description

BSE updates on securities under Insolvency and Bankruptcy Code surveillance measures, including additions and removals from various IBC stages effective December 18, 2025.

Summary

BSE has issued updates to the Additional Surveillance Measure (ASM) framework for securities under the Insolvency and Bankruptcy Code (IBC). The circular details securities being added to, moved between, or excluded from various IBC surveillance stages effective December 18, 2025.

Key Points

  • Morarjee Textiles Ltd (Scrip: 532621, ISIN: INE161G01027) added to Stage 1 ASM under IBC
  • Rolta India Ltd (Scrip: 500366, ISIN: INE293A01013) excluded from IBC ASM framework
  • Techindia Nirman Ltd (Scrip: 526576, ISIN: INE778A01021) excluded from IBC ASM framework
  • No securities moved from Stage 0 to Stage 1 or between Stage 1 and Stage 2
  • No securities moved back to Stage 0 from active surveillance
  • Consolidated list includes multiple securities across different IBC stages

Regulatory Changes

The surveillance framework categorizes securities under IBC into different stages:

  • Stage 0: Receipt of corporate announcement/disclosure from the company
  • Stage 1: Additional Surveillance Measure for companies in Insolvency Resolution Process (IRP)
  • Stage 2: Enhanced surveillance for companies with prolonged IBC proceedings

Securities may be excluded from the framework when insolvency proceedings are resolved or other conditions are met.

Compliance Requirements

  • Trading members and investors should note the surveillance status of affected securities
  • Enhanced due diligence required for securities under IBC surveillance stages
  • Price bands and trading restrictions may apply to securities in ASM framework
  • Market participants should monitor the consolidated list of securities under IBC surveillance

Important Dates

  • Effective Date: December 18, 2025 - All surveillance measure changes come into effect

Impact Assessment

Market Impact: Limited, as only three securities are affected by changes (one addition, two exclusions). The removal of Rolta India Ltd and Techindia Nirman Ltd from IBC surveillance is positive for those securities, potentially improving liquidity and investor sentiment.

Trading Impact: Morarjee Textiles Ltd will face enhanced surveillance measures including potential price bands, increased margin requirements, and closer monitoring of trading activity.

Investor Impact: Holders of affected securities should be aware of surveillance status changes. Exclusion from IBC framework may reduce trading restrictions, while addition to Stage 1 increases regulatory scrutiny.

Impact Justification

Affects trading surveillance for companies under insolvency proceedings. One security added to Stage 1 ASM, two securities excluded from IBC framework. Impacts investors holding or trading these securities.