Description

NSE updates list of securities under Additional Surveillance Measure (ASM) for companies under Insolvency and Bankruptcy Code, adding Goenka Diamond and Jewels Limited to Stage I effective October 27, 2025.

Summary

NSE has updated the list of securities subject to Additional Surveillance Measure (ASM) for companies under the Insolvency and Bankruptcy Code (IBC). Effective October 27, 2025, Goenka Diamond and Jewels Limited (GOENKA) has been added to ASM Stage I. The circular provides comprehensive lists of securities at different IBC stages and those under corporate announcement monitoring.

Key Points

  • Goenka Diamond and Jewels Limited (GOENKA, ISIN: INE516K01024) added to ASM IBC Stage I from October 27, 2025
  • No securities moved from Stage I to Stage II or vice versa during this update
  • No securities excluded from ASM IBC framework in this update
  • Total of 9 securities currently in ASM IBC Stage I
  • Total of 10 securities under receipt of corporate announcement/disclosure category
  • ASM framework monitors companies undergoing insolvency proceedings to protect investor interests

Regulatory Changes

The surveillance framework continues to categorize securities under IBC into two main classifications:

  1. Stage I: Securities of companies with initial IBC proceedings or announcements
  2. Receipt of Corporate Announcement/Disclosure: Securities where company has made IBC-related disclosures

This update adds one new security to the surveillance framework without any exclusions or stage transitions.

Compliance Requirements

For Trading Members:

  • Apply enhanced surveillance measures for all listed securities
  • Monitor client trading activities in ASM IBC securities
  • Ensure compliance with applicable trading restrictions

For Investors:

  • Be aware of heightened risk in securities under ASM IBC framework
  • Understand that companies are undergoing insolvency proceedings
  • Exercise additional caution when trading these securities

For Listed Companies:

  • Provide timely disclosures regarding IBC proceedings
  • Maintain transparency about insolvency status

Important Dates

  • October 27, 2025: Effective date for addition of GOENKA to ASM IBC Stage I

Impact Assessment

Market Impact:

  • Addition of GOENKA to ASM framework signals regulatory concern about the company’s insolvency status
  • Enhanced surveillance may lead to reduced liquidity in affected securities
  • Investors face higher risk due to ongoing insolvency proceedings

Operational Impact:

  • Trading members must update surveillance systems to include GOENKA
  • Additional monitoring requirements for brokers handling these securities
  • Potential margin increases or trading restrictions may apply

Investor Impact:

  • Shareholders of GOENKA face significant uncertainty due to IBC proceedings
  • Securities in ASM IBC framework typically experience higher volatility
  • 19 securities total (9 in Stage I + 10 under announcement category) remain under enhanced surveillance

Risk Assessment: Securities under IBC surveillance represent companies facing financial distress and potential liquidation. Investors should exercise extreme caution and consider the possibility of complete capital loss in insolvency scenarios.

Impact Justification

High importance due to addition of securities to IBC surveillance framework which imposes significant trading restrictions. High impact on affected securities and their investors due to enhanced monitoring and potential trading limitations under insolvency proceedings.