Reliance Infrastructure Limited has approached Securities and Exchange Board of India, along with the National Stock Exchange of India and BSE Limited, requesting a review of the surveillance measures currently imposed on its shares.

The company has asked regulators to reconsider the Additional Surveillance Measure (ASM) framework, arguing that the current restrictions are negatively affecting more than 700,000 public shareholders.

Key Concerns Raised by Reliance Infrastructure

Under the existing framework:

• Shares can be traded only once a week.
• The stock is subject to a narrow ±5% price band.
• Trading restrictions were triggered due to insolvency-related proceedings.

Reliance Infrastructure argues that these limitations prevent normal market price discovery and cause share price movements to become mechanical rather than reflecting the company's business performance, operational progress, and long-term value.

Impact on Shareholders

According to the company, retail investors face particular challenges under the current system.

When the stock hits lower circuits, shareholders may struggle to sell their holdings at reasonable prices. The company claims that this can lead to a steady erosion of shareholder value because trading opportunities are limited and liquidity is constrained.

Reliance Infrastructure stated that the current arrangement may not adequately serve the interests of its large retail shareholder base.

Proposed Alternatives

The company said it supports regulatory safeguards and market surveillance but believes the framework should be adjusted to improve liquidity and price discovery.

Reliance Infrastructure suggested maintaining protections such as:

• Gross settlement requirements
• 100% margin obligations
• Additional Surveillance Deposit (ASD)
• Existing investor protection mechanisms

At the same time, it proposed alternatives including:

• Periodic call-auction trading mechanisms
• Wider and graded price bands
• Enhanced two-way trading opportunities while retaining risk controls

Insolvency Proceedings Remain Stayed

The company also highlighted that the ASM restrictions remain in place despite the National Company Law Appellate Tribunal staying both the insolvency admission order and the Corporate Insolvency Resolution Process (CIRP).

Reliance Infrastructure noted that:

• No Resolution Professional has taken control of the company.
• Day-to-day operations continue under the supervision of its Board of Directors.
• Business activities are being conducted in the normal course.

Focus on Fair Price Discovery

Reliance Infrastructure said it will continue engaging with regulators and stock exchanges to seek a balanced solution that protects investors while allowing efficient market functioning.

The company maintains that a review of the current trading restrictions could improve liquidity, support fair valuation of the stock, and better serve the interests of its large shareholder base without compromising market safeguards.