Description

BSE circular detailing surveillance measures for securities under Insolvency and Bankruptcy Code (IBC), including companies moved to Stage 1 and consolidated list of securities under IRP.

Summary

BSE has issued surveillance measures for securities under the Insolvency and Bankruptcy Code (IBC) framework, effective February 09, 2026. Five companies have been shortlisted in Stage 1 of Additional Surveillance Measure (ASM) for companies under Insolvency Resolution Process (IRP). The circular provides annexures listing securities at different stages of IBC surveillance and a consolidated list of all securities currently under the IBC framework.

Key Points

  • Five securities moved to Stage 1 ASM under IBC: Aanchal Ispat Ltd, Axis Solutions Ltd, Maxgrow India Ltd, Spentex Industries Ltd, and Steelco Gujarat Ltd
  • No securities moved from Stage 1 to Stage 2 or from Stage 2 to Stage 1
  • No securities moved to Stage 0 (Receipt of corporate announcement/disclosure)
  • No securities excluded from ASM for IBC
  • Consolidated list includes 13+ securities under various stages of IBC surveillance
  • Framework includes special marking for T+0 scrips and recommencement scrips

Regulatory Changes

The circular implements BSE’s Additional Surveillance Measure (ASM) framework specifically for companies undergoing Insolvency Resolution Process under the Insolvency and Bankruptcy Code. The framework has multiple stages:

  • Stage 0: Receipt of corporate announcement/disclosure from the company regarding IBC proceedings
  • Stage 1: Active Additional Surveillance Measure for companies in IRP under IBC
  • Stage 2: Enhanced surveillance for companies continuing in IRP

Special categories are marked with symbols:

  • (*) indicates securities aligned with NSE measures
  • (~) indicates T+0 scrips shortlisted in IBC framework as per parent company
  • (^) indicates recommencement scrips

Compliance Requirements

For Listed Companies:

  • Companies under IBC proceedings must ensure timely disclosure of insolvency-related developments
  • Compliance with enhanced disclosure requirements under the surveillance framework

For Trading Members:

  • Monitor securities under IBC surveillance for additional risk management
  • Apply appropriate margin requirements for securities in different IBC stages
  • Inform clients about surveillance status and associated risks

For Investors:

  • Exercise heightened caution when trading securities under IBC surveillance
  • Understand the insolvency status and potential outcomes for invested companies
  • Be aware of potential trading restrictions or limitations

Important Dates

  • Effective Date: February 09, 2026 - All surveillance measures become applicable
  • Circular Date: February 06, 2026

Impact Assessment

Market Impact:

  • Securities under IBC surveillance typically experience reduced liquidity and investor interest
  • Price discovery may be impaired due to uncertainty around insolvency resolution outcomes
  • Five companies moving to Stage 1 face enhanced scrutiny and potential trading restrictions

Operational Impact:

  • Companies in Stage 1 ASM under IBC face operational restrictions and creditor-driven management
  • Resolution process outcomes could range from restructuring to liquidation
  • Timeline for resolution typically extends over several months to years

Investor Impact:

  • High risk of capital loss for equity investors in companies under IRP
  • Trading in these securities subject to additional risk warnings and surveillance measures
  • Limited price appreciation potential until successful resolution
  • Consolidated list provides transparency for investors to identify all securities under IBC framework

Systemic Impact:

  • Surveillance framework helps protect market integrity by flagging distressed companies
  • Provides early warning system for investors about companies in financial difficulty
  • Aligns BSE surveillance with IBC framework for consistent treatment of insolvency cases

Impact Justification

Securities under IBC surveillance face trading restrictions and additional compliance requirements, significantly impacting investor access and company operations