Description

NSE updates list of securities under Additional Surveillance Measure (ASM) framework for companies undergoing Insolvency and Bankruptcy Code (IBC) proceedings, effective October 10, 2025.

Summary

NSE has updated the list of securities under Additional Surveillance Measure (ASM) for companies subject to Insolvency and Bankruptcy Code (IBC) proceedings. Four securities have been added to Stage I ASM effective October 10, 2025: Eastern Silk Industries Limited, Jaiprakash Associates Limited, Ujaas Energy Limited, and Indosolar Limited. The consolidated list now contains 8 securities in Stage I and 9 securities at the ‘Receipt of corporate announcement/disclosure’ stage.

Key Points

  • Four securities newly added to ASM IBC Stage I: EASTSILK, JPASSOCIAT, UEL, and WAAREEINDO
  • Total 8 securities currently in Stage I ASM under IBC framework
  • No securities moved between stages (Stage I to II or Stage II to I)
  • No securities excluded from ASM framework in this update
  • 9 additional securities remain at ‘Receipt of corporate announcement/disclosure’ stage
  • Surveillance measures apply to companies undergoing insolvency proceedings

Regulatory Changes

The ASM framework for IBC applies enhanced surveillance measures to securities of companies undergoing insolvency and bankruptcy proceedings. Securities in Stage I typically face:

  • Trade-for-trade (T+T) settlement with no intraday netting
  • 5% price band restrictions (both upper and lower circuit)
  • 100% upfront margin requirements
  • Additional disclosure requirements from companies

The framework has multiple stages with progressively stringent measures based on the IBC proceedings status.

Compliance Requirements

  • Trading members must ensure 100% upfront margin collection for transactions in listed securities
  • Companies under IBC proceedings must provide timely disclosures about insolvency status
  • Investors trading in these securities must be aware of T+T settlement requirements
  • No intraday squaring off permitted for Stage I securities
  • Brokers must inform clients about ASM applicability before accepting orders

Important Dates

  • Effective Date: October 10, 2025 - New securities enter Stage I ASM framework
  • Circular Date: October 9, 2025

Impact Assessment

Market Impact: High - The addition of four securities to Stage I ASM significantly restricts trading liquidity in these stocks. The T+T settlement requirement and price bands will reduce speculative trading and increase cost of transactions due to full margin requirements.

Investor Impact: Investors holding or trading these securities face reduced liquidity, mandatory delivery-based trading, and potential difficulty in exiting positions. The 5% price band limits daily price movement, which may extend the time needed to liquidate positions.

Affected Companies:

  • Eastern Silk Industries Limited (EASTSILK) - INE962C01035
  • Jaiprakash Associates Limited (JPASSOCIAT) - INE455F01025
  • Ujaas Energy Limited (UEL) - INE899L01030
  • Indosolar Limited (WAAREEINDO) - INE866K01023

Operational Impact: Trading members must update surveillance lists, modify margin collection systems, and ensure proper client communication about trading restrictions. Risk management systems need recalibration for these securities.

Impact Justification

Four new securities added to Stage I ASM under IBC framework, significantly restricting trading with T+T settlement and price bands, affecting investor liquidity and trading activity in these stocks.