Reliance Infrastructure has urged market regulator SEBI and stock exchanges NSE and BSE to review the Additional Surveillance Measure (ASM) framework linked to insolvency proceedings, citing concerns over its impact on liquidity, price discovery and more than 7 lakh retail shareholders.
In a representation submitted to the regulators, the company said the current framework permitting trading only once a week within a narrow ±5 per cent price band results in mechanical and predictable price movements that do not adequately reflect business fundamentals or operational performance.
Reliance Infrastructure said the continued trading restrictions are adversely affecting shareholder value and undermining investor confidence despite the stock being otherwise actively traded in the market.
The company said the impact of the restrictions falls disproportionately on public shareholders, especially during lower-circuit phases when investors are unable to exit holdings at reasonable market prices while the value of investments declines by a near-fixed percentage every week.
Reliance Infrastructure has sought a review of the once-a-week trading restriction and proposed a calibrated approach that retains safeguards such as gross settlement, 100 per cent margin requirements, Additional Surveillance Deposit and price-band protections while enabling more effective price discovery.
The company suggested alternatives including a periodic call-auction mechanism or a wider and graded price band to facilitate genuine two-sided trading.
Reliance Infrastructure also highlighted that the ASM framework was triggered despite the National Company Law Appellate Tribunal staying both the insolvency admission order and the Corporate Insolvency Resolution Process against the company.
It said no Resolution Professional has taken control of the company and its affairs continue to be managed by the board of directors in the normal course of business.
The company said it will continue engaging constructively with regulators and market institutions while remaining focused on long-term value creation for shareholders.