Description

NSE circular announcing securities moving out of Additional Surveillance Measure under Insolvency and Bankruptcy Code effective August 1, 2025.

Summary

NSE has issued a circular regarding the applicability of Additional Surveillance Measure (ASM) under the Insolvency and Bankruptcy Code (IBC). Ten securities are moving to “Receipt of corporate announcement/disclosure from the company” category, indicating reduced surveillance requirements. No new securities are being added to ASM-IBC categories.

Key Points

  • No securities are being newly shortlisted under ASM-IBC Stage I or Stage II
  • Ten companies are moving out of stricter ASM-IBC surveillance to disclosure-based monitoring
  • ASM-IBC framework operates in conjunction with other surveillance measures
  • Shortlisting under ASM-IBC is purely for market surveillance and not an adverse action against companies

Regulatory Changes

Effective August 1, 2025, ten securities will move from ASM-IBC surveillance to “Receipt of corporate announcement/disclosure from the company” category, representing a relaxation of surveillance measures for these entities.

Compliance Requirements

  • Market participants must note the changed surveillance status of the ten listed securities
  • Companies moving to disclosure category must continue providing corporate announcements and disclosures as required
  • Members should monitor these securities under the revised surveillance framework

Important Dates

  • Effective Date: August 1, 2025 - New ASM-IBC categorization takes effect
  • Circular Date: July 31, 2025 - Official notification date

Impact Assessment

Positive development for the ten affected companies as they move to less restrictive surveillance measures. This suggests improved compliance or resolution of issues that initially triggered ASM-IBC classification. Limited broader market impact as this affects specific companies rather than market-wide changes. The absence of new additions to ASM-IBC categories indicates stable conditions for companies under IBC proceedings.

Impact Justification

Routine surveillance measure update affecting specific companies under IBC proceedings with limited market-wide impact