In a major setback for the Anil Ambani-led ADAG group, Reliance Infrastructure has been admitted into the Insolvency Resolution Process (IRP) under the Insolvency and Bankruptcy Code (IBC). Following this development, stock exchanges have placed the company’s shares under Additional Surveillance Measures (ASM), significantly restricting trading activity. As per exchange guidelines, Reliance Infrastructure shares will now trade only once a week, on Mondays. Only selling will be permitted, while fresh buying has been prohibited on trading platforms such as Zerodha. The move is aimed at curbing speculative activity and protecting retail investors amid heightened volatility surrounding the stock.
Brokerage communication to investors clarified that shares held in demat accounts will be visible on trading terminals only on the designated trading day. On other days, the holdings may not appear on front-end platforms but will remain accessible through back-office or console systems, leading to confusion among several retail investors. The negative sentiment surrounding the Anil Ambani group spilled over into other group stocks as well. Reliance Power, which also belongs to the same business conglomerate, witnessed a decline in its share price during Monday’s trading session, reflecting broader investor concerns. Both Reliance Infrastructure and Reliance Power are part of the group promoted by Anil Ambani.
Several shareholders took to social media seeking clarity, questioning whether they would lose their entire investment and whether an exit would be possible. Market participants pointed out that the restriction is temporary and regulatory in nature, aimed at cooling excessive volatility caused by repeated upper-circuit hits. Experts also clarified that the current move does not mean Corporate Insolvency Resolution Process (CIRP has begun). IRP surveillance measures and legal insolvency proceedings are different, and the present action is linked to price movement controls rather than bankruptcy. Selling is expected to resume from Monday, December 29, and will continue every Monday for as long as the stock remains under the restricted trading framework. However, liquidity may remain thin, and exit opportunities could be limited. For investors, Reliance Infrastructure trading is not officially suspended but is effectively frozen for buyers, with only a narrow sell-only window available once a week. Shares of Reliance Infrastructure rose 5% to Rs 157.50 on the BSE on Wednesday and hit the upper circuit.
The stock has been locked in the upper circuit for the last few days. In just five days, the share price has jumped more than 21%, rising from around Rs 129 to above Rs 157. On Friday the stock closed at Rs.173 hitting another upper circuit before trading was suspended.Over the last five years, Reliance Infrastructure shares have gained more than 497%. The stock’s 52-week high is Rs 425, while the 52-week low is Rs 127.95. However, the stock has been weak in recent months. It has fallen over 57% in the last six months and around 17% in the past one month.
Reliance Infrastructure have been facing selling pressure after Enforcement Directorate (ED) last week attached a total assets worth ₹10,000 crore as part of its ongoing money laundering probe against the companies of Reliance Group chairman Anil Ambani.Reliance Group companies have repeatedly said Ambani was not involved in the day-to-day management of the conglomerate. The industrialist has once been questioned by the ED as part of the money-laundering investigation linked to an alleged Rs 17,000-crore bank fraud against his group companies.