Reliance Infrastructure (Reliance Infra) has submitted a representation to the Securities and Exchange Board of India (Sebi), National Stock Exchange (NSE) and BSE, seeking a review of the surveillance framework linked to Insolvency and Bankruptcy Code (IBC).
The company has sought a review of the Additional Surveillance Measure (ASM) framework and related trading restrictions on its shares, citing their adverse impact on its more than 700,000 public shareholders, and emphasising the need to ensure that market mechanisms continue to facilitate fair price discovery and maintain investor confidence.
In its representation, Reliance Infra has highlighted that the current framework, which permits trading only once a week within a narrow ±5 per cent price band, results in price movements that are largely mechanical and predictable. Such restrictions may not adequately reflect prevailing business fundamentals, operational performance or long-term value creation potential, it contended.
Reliance Infra said its shares are otherwise actively and widely traded in the market, reflecting sustained investor participation and liquidity. The company highlighted that the continuation of such anomalous and artificial trading restrictions is counterproductive to the interests of the retail and small public shareholders, and undermines the efficient functioning of the market.
The company further submitted that the impact of these restrictions falls disproportionately on its public shareholders. During lower-circuit phases, shareholders are often unable to exit their investments at a reasonable market price, while the value of their holdings erodes by a near-fixed percentage each week.
The company urged regulators to review the once-a-week trading restriction in its shares, and introduce appropriate safeguards that balance market surveillance objectives with investor protection and shareholder interests.
As part of its representation, Reliance Infra has proposed a calibrated approach that retains key risk-mitigation measures, including gross settlement, 100 per cent margin requirements, Additional Surveillance Deposit (ASD) and price-band safeguards, while enabling more effective price discovery. 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 also highlighted that 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 the company. Reliance Infra noted that no Resolution Professional had assumed control of the company and that its affairs continued to be managed by its duly constituted board of directors in the normal course of business.
Reliance Infra said 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.
