Description

NSE circular notifying addition of Parsvnath Developers Limited (PARSVNATH) to ASM under Insolvency and Bankruptcy Code (IBC) and exclusion of Morarjee Textiles Limited (MORARJEE) from ASM IBC, effective May 14, 2026.

Summary

NSE has issued Circular NSE/SURV/74199 (Ref. 356/2026) dated May 13, 2026, updating the list of securities under the Additional Surveillance Measure (ASM) for companies subject to the Insolvency and Bankruptcy Code (IBC). Parsvnath Developers Limited (PARSVNATH) has been newly shortlisted under the ‘Receipt of Corporate Announcement/Disclosure’ category, while Morarjee Textiles Limited (MORARJEE) has been excluded from ASM IBC, both effective May 14, 2026.

Key Points

  • PARSVNATH (Parsvnath Developers Limited, ISIN: INE561H01026) added to ASM IBC under ‘Receipt of corporate announcement/disclosure from the company’ category w.e.f. May 14, 2026.
  • No securities were added to ASM IBC Stage I or moved between Stage I and Stage II.
  • MORARJEE (Morarjee Textiles Limited, ISIN: INE161G01027) excluded from ASM IBC w.e.f. May 14, 2026.
  • No securities were moved to the ‘Receipt of corporate announcement/disclosure’ category under Annexure II.
  • The consolidated ASM IBC list continues to include AGSTRA (AGS Transact Technologies Limited), BILVYAPAR (BIL Vyapar Limited), CLCIND (CLC Industries Limited), and DHARAN (Dharan Infra-EPC Limited), among others.
  • ASM IBC framework operates in conjunction with all other prevailing surveillance measures imposed by the Exchanges.

Regulatory Changes

This circular is issued in reference to prior NSE circulars: NSE/SURV/37979 (June 8, 2018), NSE/SURV/52368 (May 20, 2022), NSE/SURV/55582 (February 10, 2023), and NSE/SURV/70074 (September 5, 2025), which established and amended the ASM framework for IBC companies. The current update modifies the shortlisted and excluded securities list under this framework.

Compliance Requirements

  • NSE members must note and comply with the revised ASM IBC security list effective May 14, 2026.
  • Members should apply applicable trading restrictions and margin requirements for PARSVNATH as per the ASM IBC ‘Receipt of corporate announcement/disclosure’ category.
  • Normal trading conditions restored for MORARJEE following its exclusion from ASM IBC.
  • Market participants are reminded that ASM IBC classification is a surveillance measure and should not be construed as adverse action against the concerned company.
  • For queries, members may contact surveillance@nse.co.in.

Important Dates

  • Circular Date: May 13, 2026
  • Effective Date: May 14, 2026 — PARSVNATH added to ASM IBC; MORARJEE excluded from ASM IBC.

Impact Assessment

The impact is moderate and stock-specific. PARSVNATH (Parsvnath Developers Limited) will be subject to heightened surveillance under the IBC ASM framework from May 14, 2026, which typically involves additional margin requirements and trade restrictions, potentially reducing liquidity in the stock. Traders and investors holding or planning to trade PARSVNATH should factor in these constraints. Conversely, MORARJEE (Morarjee Textiles Limited) is relieved from ASM IBC restrictions, which may improve liquidity and reduce trading costs for that stock. The overall market impact is limited as only these two securities are affected in this update. The consolidated ASM IBC list remains largely unchanged, with several securities continuing under Stage I restrictions.

Impact Justification

Affects a small number of specific securities under the IBC surveillance framework; operational impact is limited to those stocks and their traders, not market-wide.