Reliance Infrastructure shares remained out of regular trading for the third consecutive day, deepening concerns among 7 lakh investors holding roughly 9.44 crore shares, valued at around ₹1,640 crore as regulatory curbs continue following the company’s admission into the Insolvency Resolution Process (IRP) under the Insolvency and Bankruptcy Code (IBC). The Reliance Group company continues to be under stringent Additional Surveillance Measures (ASM) imposed by stock exchanges, severely restricting market participation and keeping the stock away from active trading. Under the ASM framework, Reliance Infrastructure shares are allowed to trade only once a week—on Mondays—with only selling permitted and fresh buying barred.
This restriction continues to limit investors’ ability to exit positions, creating heightened uncertainty, especially among retail shareholders, after the stock witnessed sharp volatility and repeated upper-circuit moves in recent sessions. Market participants noted that these curbs are regulatory and preventive in nature, aimed at cooling excessive speculation and ensuring orderly trading.Despite the limitations, the stock has shown strong short-term momentum. It has gained approximately 27% in the past week, though its one-year return remains around –40%. The stock has a history of extreme volatility, having once traded in the thousands, dropping to near-collapse, and now showing signs of recovery at ₹173.20.
Adding to the concern, Foreign Institutional Investors (FIIs) have been consistently reducing their stakes, which have fallen from 11.35% to 7.08% since March 2025. While the rally may appear impressive, the steady exit of foreign investors suggests that the surge may not be fully sustainable, and the stock may be better suited for short-term trading rather than long-term investment.With trading restrictions in place, liquidity investors may be limited, making it difficult to exit positions when needed. The recent rally, which saw the stock rise about 5% to ₹173, appears to be largely technical and speculative, rather than supported by strong fundamentals. Negative EPS and ROE, coupled with ongoing IBC proceedings, mean that any rapid gains could be followed by sharp declines. The Trading Restricted status further complicates matters, as sudden buying or selling may not be possible, and lower volumes could make the stock vulnerable to price manipulation.