Description

BSE updates surveillance measures for securities under Insolvency and Bankruptcy Code (IBC), with Indosolar Ltd moving to Stage 1 effective December 30, 2025.

Summary

BSE has updated the Additional Surveillance Measure (ASM) framework for securities of companies undergoing Insolvency Resolution Process (IRP) under the Insolvency and Bankruptcy Code (IBC). Effective December 30, 2025, Indosolar Ltd (Scrip Code: 533257, ISIN: INE866K01023) has been moved to Stage 1 of the IBC surveillance framework. The circular provides consolidated lists of securities under various stages of IBC surveillance.

Key Points

  • Indosolar Ltd added to Stage 1 of Additional Surveillance Measure for IBC companies effective December 30, 2025
  • No securities moved to Stage 0 (Receipt of corporate announcement/disclosure)
  • No securities transitioned from Stage I to Stage II or vice versa
  • No securities excluded from ASM framework
  • Consolidated list includes 15+ securities across different IBC stages and announcement stages
  • Framework includes special markers for T+0 scrips (~) and recommencement scrips (^)

Regulatory Changes

The surveillance framework categorizes securities under IBC into different stages:

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

Securities in these stages face additional trading restrictions and surveillance measures to protect investor interests.

Compliance Requirements

  • Market participants must note the changed surveillance status of Indosolar Ltd
  • Trading members should inform clients about enhanced surveillance applicable to Stage 1 securities
  • Investors should be aware of heightened risks associated with securities under IBC proceedings
  • Brokers must ensure appropriate risk disclosures for transactions in IBC-affected securities

Important Dates

  • Effective Date: December 30, 2025 - Indosolar Ltd moves to IBC Stage 1
  • Circular Date: December 29, 2025

Impact Assessment

Market Impact: High - Securities under IBC surveillance face restricted trading conditions, reduced liquidity, and heightened investor caution. The movement of Indosolar Ltd to Stage 1 indicates active insolvency proceedings, which significantly impacts trading dynamics and investor sentiment.

Operational Impact: Market participants must update their risk management systems and client communication processes to reflect the changed surveillance status. The consolidated list of 15+ securities under various IBC stages indicates substantial market segments under enhanced monitoring.

Investor Impact: Shareholders of affected securities face increased uncertainty regarding recovery prospects and potential capital loss. Enhanced surveillance measures serve as investor protection mechanisms but also signal elevated risk levels.

Impact Justification

IBC surveillance measures directly impact trading conditions and investor risk for affected securities, with stringent restrictions on companies under insolvency proceedings