Description

BSE updates the list of securities under Additional Surveillance Measure (ASM) for companies in Insolvency Resolution Process as per IBC, effective January 01, 2026.

Summary

BSE has updated the Additional Surveillance Measure (ASM) framework for securities under the Insolvency and Bankruptcy Code (IBC), effective January 01, 2026. Five securities have been moved to Stage 0 (Receipt of corporate announcement/disclosure), and one security (Indosolar Ltd) has been excluded from the ASM framework. No securities were shortlisted for Stage 1 or moved between Stage 1 and Stage 2 during this update.

Key Points

  • Five securities moved to IBC Stage 0: A.F. Enterprises Ltd, East India Drums and Barrels Manufacturing Ltd, Seya Industries Ltd, Swan Defence And Heavy Industries Ltd, and Tricom Fruit Products Ltd
  • One security excluded from ASM-IBC framework: Indosolar Ltd (Scrip Code: 533257, ISIN: INE866K01023)
  • No new securities added to Stage 1 (IRP commencement)
  • No movements between Stage 1 and Stage 2
  • Consolidated list includes securities across different IBC stages with special markers for T+0 scrips, NSE alignment, and recommencement scrips

Regulatory Changes

The surveillance framework continues to monitor companies undergoing insolvency resolution processes with a staged approach:

  • Stage 0: Receipt of corporate announcement/disclosure from the company
  • Stage 1: Commencement of Insolvency Resolution Process (IRP)
  • Stage 2: Advanced stage of IBC proceedings

Securities are subject to enhanced surveillance measures based on their IBC stage, with movements between stages based on developments in insolvency proceedings.

Compliance Requirements

  • Market participants must note the changed surveillance status of affected securities
  • Trading members should be aware of applicable surveillance measures for securities in different IBC stages
  • Enhanced due diligence required for securities under IBC framework
  • Investors should monitor corporate announcements from companies in Stage 0

Important Dates

  • Effective Date: January 01, 2026 - New surveillance classifications come into effect

Impact Assessment

Trading Impact: Securities moving to Stage 0 may experience modified trading parameters. Exclusion of Indosolar Ltd from ASM framework normalizes its trading status.

Investor Impact: Investors holding securities under IBC surveillance should monitor insolvency proceedings closely. Stage 0 classification indicates potential insolvency risk based on corporate disclosures.

Market Impact: Limited broader market impact as changes affect specific companies under financial distress. The framework provides transparency on insolvency-related risks for market participants.

Impact Justification

Affects trading parameters for securities under IBC framework. Five securities moved to Stage 0, one excluded from ASM. Moderate market impact as changes apply to specific distressed companies.