Exchanges to devise additional surveillance measures for firms under IRP

Mumbai, June 9 (IANS) Stock market regulator Securities and Exchange Board of India (SEBI) has directed exchanges to introduce surveillance measures for companies that are being proceeded against under the Insolvency Resolution Process (IRP) of the Insolvency and Bankruptcy Code, effective June 11, 2018.

“In continuation to various surveillance measures already implemented, SEBI and exchanges, pursuant to discussions in joint surveillance meetings, have decided that along with the aforesaid measures there shall be surveillance measures for companies that are undergoing IRP as per IBC w.e.f June 11, 2018,” the BSE said in a statement on Saturday.

Accordingly, the list of securities undergoing IRP as per IBC shall be available on the exchange’s website.

“The aforesaid securities shall be monitored on a pre-determined objective criteria and margin shall be levied at the rate of 100 per cent once the criteria gets satisfied,” the statement said.

“These securities shall be further monitored for an objective criteria and shall be shifted to Trade for Trade segment once the criteria gets satisfied.”

Additionally, the statement said that new steps shall be in conjunction with all other prevailing surveillance measures being imposed by the exchanges.

Moreover, SEBI and exchanges have introduced various “pre-emptive surveillance measures such as reduction in price band, periodic call auction and transfer of securities to Trade to Trade category” to enhance market integrity.

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