Description

BSE updates on securities under Insolvency and Bankruptcy Code (IBC) surveillance framework with movements across stages effective January 1, 2026.

Summary

BSE has issued updates to the surveillance framework for securities under the Insolvency and Bankruptcy Code (IBC). The circular lists securities moving between different surveillance stages effective January 1, 2026. Five companies are moving to Stage 0 (receipt of corporate announcement/disclosure), and one company (Indosolar Ltd) is being excluded from the ASM for IBC framework. No securities are being added to Stage 1 or moving between Stage I and Stage II.

Key Points

  • No securities shortlisted for Stage 0 or Stage 1 effective January 1, 2026
  • No securities moving from Stage I to Stage II or Stage II to Stage I
  • 5 securities moving to Stage 0 (receipt of corporate announcement): A.F. Enterprises Ltd, East India Drums and Barrels Manufacturing Ltd, Seya Industries Ltd, Swan Defence And Heavy Industries Ltd, Tricom Fruit Products Ltd
  • 1 security excluded from IBC ASM framework: Indosolar Ltd (Scrip Code: 533257, ISIN: INE866K01023)
  • Consolidated list includes securities across various IBC stages with special markers for T+0 scrips (~), NSE-based (*), and recommencement scrips (^)

Regulatory Changes

The IBC surveillance framework continues with its multi-stage approach:

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

Securities can move between stages based on developments in insolvency proceedings or be excluded upon resolution.

Compliance Requirements

  • Market participants must note the updated surveillance status of affected securities
  • Trading in securities under IBC surveillance stages may be subject to additional monitoring and restrictions
  • Investors should be aware of enhanced risk associated with securities in IBC framework
  • Companies must provide timely disclosures regarding insolvency proceedings

Important Dates

  • Effective Date: January 1, 2026 - All stage movements and exclusions take effect

Impact Assessment

Market Impact: Limited direct market impact as only 6 securities are affected. The 5 companies moving to Stage 0 indicates initial phase of IBC proceedings or corporate announcements related to insolvency. The exclusion of Indosolar Ltd suggests resolution or withdrawal from IBC framework.

Investor Impact: Investors holding shares in the 5 companies moving to Stage 0 should exercise caution and monitor developments. The exclusion of Indosolar Ltd is positive for its investors as it exits enhanced surveillance.

Operational Impact: Brokers and trading members need to update their systems to reflect the new surveillance status of these securities from January 1, 2026. Special attention required for marked securities (T+0 scrips, recommencement scrips).

Impact Justification

Affects specific securities under insolvency proceedings with 5 companies moving to Stage 0 and 1 company excluded from ASM framework