Exchanges announce host of safeguards for investors in cos under IBC

Bourses to tag firms, ask brokers to alert clients who place orders in such stocks; RPs asked to make disclosures after NCLT oral order, inform existing shareholders about impact on their holdings

Market regulator Sebi and stock exchanges have announced further safeguards to protect small investors and curb price manipulation in shares of companies under insolvency resolution process.

The National Stock Exchange (NSE) and BSE said they have initiated several steps to curtail information asymmetry and confusion in the market when it comes to listed companies undergoing Corporate Insolvency Resolution Process (CIRP) as per the Insolvency and Bankruptcy Code (IBC)

In the past, several shareholders have got caught on the wrong foot while dealing in companies Dewan Housing Finance Corporation (DHFL), Jet Airways and Videocon Industries, amid lack of clarity with regards