Description

BSE updates the list of securities under Additional Surveillance Measure relating to Insolvency Resolution Process as per IBC, with two securities moving to Stage 1 effective January 19, 2026.

Summary

BSE has updated the surveillance framework for securities under the Insolvency and Bankruptcy Code (IBC). Effective January 19, 2026, two securities - PAE Ltd (Scrip Code: 517230, ISIN: INE766A01026) and VXL Instruments Ltd (Scrip Code: 517399, ISIN: INE756A01019) - have been shortlisted under Additional Surveillance Measure (ASM) Stage 1 for companies relating to the Insolvency Resolution Process. The circular also provides a consolidated list of all securities currently under various IBC surveillance stages.

Key Points

  • Two securities added to ASM Stage 1 under IBC framework: PAE Ltd and VXL Instruments Ltd
  • No securities added to Stage 0 (Receipt of corporate announcement/disclosure)
  • No securities moved from Stage I to Stage II
  • No securities moved from Stage II to Stage I
  • No securities excluded from ASM for IBC
  • Changes effective from January 19, 2026
  • Consolidated list includes multiple securities at different surveillance stages

Regulatory Changes

The circular implements BSE’s surveillance framework for companies undergoing insolvency proceedings under the Insolvency and Bankruptcy Code. The framework has multiple 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 (IRP)
  • Stage 2: Enhanced surveillance with stricter monitoring

Securities are categorized based on their status in insolvency proceedings, with progressive surveillance measures applied as the situation evolves.

Compliance Requirements

  • Trading members must take note of securities under IBC surveillance framework
  • Enhanced due diligence required for transactions in listed securities
  • Investors should be aware of the insolvency status before trading
  • Special notations apply: (~) for T+0 scrips shortlisted in IBC framework as per parent company, (^) for recommencement scrips, (*) as per NSE

Important Dates

  • Effective Date: January 19, 2026 - New surveillance measures come into effect for PAE Ltd and VXL Instruments Ltd

Impact Assessment

Market Impact: Medium - Two securities are being placed under enhanced surveillance, which may affect their trading liquidity and investor sentiment. The IBC surveillance framework serves as an early warning system for investors about companies facing insolvency proceedings.

Investor Impact: Investors holding or trading in PAE Ltd and VXL Instruments Ltd should exercise caution as these securities are now under Stage 1 surveillance due to insolvency proceedings. This typically indicates financial distress and increased investment risk.

Operational Impact: Trading members need to update their systems to reflect the changed surveillance status and ensure appropriate risk disclosures are provided to clients trading in these securities.

Impact Justification

Affects trading in two specific securities under IBC framework with enhanced surveillance measures; investors holding these stocks should be aware of increased monitoring and potential trading restrictions