Description

BSE updates surveillance measures for securities under Insolvency and Bankruptcy Code (IBC), including companies moving between stages and exclusions from ASM framework.

Summary

BSE has issued surveillance measures for securities under the Insolvency and Bankruptcy Code (IBC) framework effective February 01, 2026. String Metaverse Ltd has been shortlisted in Stage 1 Additional Surveillance Measure. Ten securities are moving to Stage 0 (Receipt of corporate announcement/disclosure), and Ujaas Energy Ltd is being excluded from ASM framework. The circular provides comprehensive annexures listing all affected securities across different IBC stages.

Key Points

  • String Metaverse Ltd (Scrip Code: 534535, ISIN: INE958L01026) shortlisted in Stage 1 ASM under IBC framework
  • 10 securities moving to Stage 0 (corporate announcement receipt stage) from previous surveillance stages
  • Ujaas Energy Ltd (Scrip Code: 533644) being excluded from ASM for IBC framework
  • No securities moving from Stage I to Stage II or vice versa
  • Consolidated list includes multiple securities at various IBC stages including recommencement scrips marked with ^
  • T+0 scrips shortlisted based on parent company marked with ~
  • Framework aligned with NSE surveillance measures

Regulatory Changes

The surveillance framework for IBC-related securities continues with stage-based monitoring:

Stage 0: Receipt of corporate announcement/disclosure from company regarding insolvency proceedings

Stage 1: Additional Surveillance Measure for companies in Insolvency Resolution Process under IBC

Stage 2: Enhanced surveillance for companies with prolonged insolvency proceedings

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

Compliance Requirements

  • Trading members must note surveillance stage classifications for affected securities
  • Enhanced due diligence required for securities under IBC surveillance framework
  • Investors should be informed about surveillance status of these securities
  • Price bands and trading restrictions may apply based on surveillance stage
  • Compliance with disclosure requirements for securities under IBC proceedings

Important Dates

  • Effective Date: February 01, 2026 - All surveillance measure changes take effect
  • Circular Issue Date: January 30, 2026

Impact Assessment

Trading Impact: String Metaverse Ltd entering Stage 1 ASM will face additional surveillance measures including potential trading restrictions, price bands, or enhanced disclosure requirements. The 10 securities moving to Stage 0 indicate new or updated insolvency disclosures requiring heightened investor awareness.

Market Impact: Securities under IBC surveillance typically experience increased volatility and reduced liquidity. Investors holding these securities may face challenges in position unwinding due to trading restrictions.

Investor Impact: High impact for shareholders of affected companies, particularly String Metaverse Ltd entering enhanced surveillance. Securities moving to Stage 0 provide early warning for investors to reassess risk exposure.

Positive Development: Ujaas Energy Ltd exclusion from ASM framework indicates resolution or improvement in insolvency status, potentially restoring normal trading conditions.

Securities Affected

Entering Stage 1 ASM:

  • String Metaverse Ltd (534535)

Moving to Stage 0:

  • Aanchal Ispat Ltd (538812)
  • Axis Solutions Ltd (511144)
  • Carnation Industries Ltd (530609)
  • Jaiprakash Associates Ltd (532532)
  • Maxgrow India Ltd (521167)
  • Morarjee Textiles Ltd (532621)
  • Ortel Communications Ltd (539015)
  • Reliance Infrastructure Ltd (500390)
  • Steelco Gujarat Ltd (500399)
  • Tiaan Consumer Ltd (540108)

Excluded from ASM:

  • Ujaas Energy Ltd (533644)

Impact Justification

High impact circular affecting trading in multiple securities undergoing insolvency proceedings, with one security entering Stage 1 ASM and ten securities moving to Stage 0, directly impacting investor positions and trading restrictions