Reliance Infrastructure has formally requested regulatory authorities to review the current Insolvency and Bankruptcy Code (IBC)-linked surveillance framework. According to reports from PTI and Business Standard, the company has submitted a formal representation to SEBI, NSE and BSE seeking a review of the Additional Surveillance Measure (ASM) linked to IBC and related trading restrictions on its shares. This regulatory approach demonstrates the company's commitment to ensuring proper oversight of IBC-related matters within the financial markets.
The review request specifically targets the IBC-linked surveillance framework currently in place across the Indian financial markets. As reported by PTI and Business Standard, the company's representation encompasses all major regulatory bodies including SEBI, NSE and BSE, indicating a comprehensive approach to addressing potential gaps in the existing oversight mechanisms. This multi-regulatory approach suggests that Reliance Infrastructure views the surveillance framework as requiring coordinated attention across all major market participants.
The current ASM framework permits trading only once a week within a narrow ±5% price band, resulting in price movements that are largely mechanical and predictable. According to PTI and Business Standard reports, the company cites adverse impact on more than 700,000 public shareholders, with the restrictions falling disproportionately on retail and small public shareholders. During lower-circuit phases, shareholders are often unable to exit their investments at reasonable market prices while their holdings erode by a near-fixed percentage each week. The company emphasizes that such restrictions may not adequately reflect prevailing business fundamentals, operational performance or long-term value creation potential. The company has highlighted that the continued trading restrictions are adversely affecting shareholder value and undermining investor confidence despite the stock being otherwise actively traded in the market.
In its representation to regulators, Reliance Infrastructure has proposed a calibrated approach that retains key risk-mitigation measures including gross settlement, 100% margin requirements, Additional Surveillance Deposit (ASD) and price-band safeguards, while enabling more effective price discovery. As reported by PTI and Business Standard, the company has requested regulators to consider alternatives such as a periodic call-auction mechanism or a wider and graded price band to facilitate genuine two-sided trading. The company notes that its shares are otherwise actively and widely traded in the market, reflecting sustained investor participation and liquidity. The company further emphasized that the continuation of such anomalous and artificial trading restrictions is counterproductive to the interests of retail and small public shareholders and undermines the efficient functioning of the market.
According to PTI and Business Standard reports, the ASM framework was triggered despite the National Company Law Appellate Tribunal (NCLAT) staying both the insolvency admission order and the Corporate Insolvency Resolution Process (CIRP) against Reliance Infrastructure. No resolution professional has assumed control of the company, and its affairs continue to be managed by its duly constituted board of directors in the normal course of business. On Friday, Reliance Infrastructure shares ended at ₹81.76 apiece on the National Stock Exchange, gaining 5%. As per market data, shares have jumped 15% over a month but have fallen 44% in the past six months. The company maintains a market capitalization of ₹3,340.97 crore and has experienced significant volatility, with shares touching their one-year high of ₹423.40 on June 30, 2025, and hitting their 52-week low of ₹64.08 on May 25, 2026. Reliance Infrastructure has stated it will continue to work constructively with regulators and market institutions in the interest of all stakeholders, while remaining focused on long-term value creation for its shareholders.
