Mumbai: A sudden trading restriction on Reliance Infrastructure Ltd. on Monday, December 22, 2025, triggered confusion among retail investors and rippled through other Anil Ambani-group counters—most notably Reliance Power Ltd., which slid sharply in early trade amid concerns about liquidity and exit options.
The episode has quickly become one of the most talked-about market developments of the day because it combines three ingredients that typically amplify volatility: a widely-held retail stock, a constrained trading mechanism, and legal/regulatory overhang tied to the Insolvency and Bankruptcy Code (IBC).
What changed for Reliance Infrastructure on December 22
Brokerage platforms and investor messages on December 22 flagged Reliance Infrastructure as being placed under a restricted trading framework linked to the Insolvency and Bankruptcy Code—often shown as “IBC/IRP Stage” in trading terminals—meaning the stock could shift to limited trading windows rather than regular continuous trading. Zerodha+1
Zerodha’s market bulletin (published December 19, 2025) listed Reliance Infrastructure Ltd. as moving into “IBC Stage 1” effective 2025-12-22, along with a note that holdings may not appear on the Kite front-end on non-trading days under this framework (but remain visible via the back-office/Console). Zerodha
Lokmat Times reported that the exchanges’ action placed Reliance Infrastructure under surveillance-linked restrictions that significantly reduce trading flexibility—citing a “once-a-week” mechanism and a sell-only environment on certain platforms, which can leave investors with limited exit opportunities and thinner liquidity. Lokmat Times
BusinessWorld, describing the development as a “mysterious halt,” linked the day’s trading disruption to the broader insolvency timeline and the company’s earlier legal proceedings—an angle that further fueled investor questions over what exactly triggered the effective trading freeze now being experienced on broker terminals. BusinessWorld
Why investors saw “holdings disappear” and “sell-only” messages
The mechanics behind IBC/IRP-stage trading restrictions can be counterintuitive for retail participants—especially those encountering it for the first time.
Under broker guidance commonly associated with IRP/IBC-stage scrips:
- Holdings can be sold only on the first trading day of the week (typically Monday; Tuesday if Monday is a trading holiday).
- Intraday trading is not allowed, and BTST-style selling is restricted.
- Fresh buying may be blocked on platforms where additional surveillance requirements apply.
- Higher margins (often 100%) can apply.
This is broadly consistent with how Zerodha explains IRP-stage treatment in its support documentation and bulletins, and aligns with the “once-a-week” trading constraint highlighted in surveillance frameworks. Zerodha+1
Separately, the National Stock Exchange’s published description of surveillance stages (for GSM) also includes “trade once a week (Every Monday / 1st trading day of the week)” language at higher stages—illustrating how Indian market surveillance can deliberately reduce trading frequency to curb speculative excess. NSE India
Lokmat Times added that some investors were confused because the stock may not appear in the front-end holdings view on non-designated days, even though the position still exists in the demat/back-office record—leading to a wave of social-media questions about whether holdings had been “removed” or “wiped out.” Lokmat Times
The spillover: Reliance Power drops as sentiment turns risk-off
The trading restrictions on Reliance Infrastructure quickly spilled into other group counters, with Reliance Power becoming the most visible casualty on December 22.
Lokmat Times reported Reliance Power shares tumbled about 7% during Monday’s session, attributing the move to the shock and uncertainty created by the Reliance Infrastructure trading disruption and the resulting anxiety about liquidity in related group stocks. The report cited the stock trading around ₹36.03 at the time of writing.
Meanwhile, Business Standard’s capital market feed noted that Reliance Power was down 2.9% early in the day, trading around ₹37.45 (as of 9:50 AM IST), and provided broader market context including index performance and volumes.
Put together, the two reports paint a picture of a volatile session for Reliance Power: a sharp intraday drawdown (reported near 7% at one point) alongside an earlier snapshot showing a smaller decline—consistent with the kind of fast-moving price action seen when retail sentiment flips and liquidity thins.
Business Standard also noted that Reliance Power had fallen 3.58% over the prior month, compared with a 3.11% drop in the BSE Utilities index, and included key reference points such as the stock’s record high of ₹76.49 (June 11, 2025) and 52-week low of ₹31.3 (March 3, 2025).
The legal backdrop: NCLT admission, payment claims, and the NCLAT stay
A central reason the December 22 restriction has drawn such scrutiny is that it intersects with a well-documented legal timeline from mid-2025.
In a regulatory disclosure dated June 3, 2025, Reliance Infrastructure referenced an NCLT Mumbai order dated May 30, 2025 admitting an insolvency petition and appointing an interim resolution professional (IRP). The same document states the default amount alleged as ₹88.68 crore (₹88,68,19,930) and includes the tribunal’s order text.
In that June 3 filing, the company also said it had made full payment of ₹92.68 crore to Dhursar Solar Power Private Limited and argued the NCLT order had become “infructuous” (as legally advised), noting that it would pursue an appeal before the NCLAT. BS Media
Outlook Business reported on June 4, 2025 that the NCLAT stayed insolvency proceedings against Reliance Infrastructure, coming shortly after the NCLT admission.
Against that history, investors and market watchers on December 22 were left asking: why would the stock be tagged “IBC Stage 1” effective today if earlier proceedings were stayed, and what fresh development—legal, procedural, or exchange-driven—explains the timing? BusinessWorld’s reporting framed the halt as out of sync with the prior legal timeline, adding to that debate. BusinessWorld+2Outlook Business+2
“Suspended” vs “restricted”: what the market is actually experiencing
Much of the confusion stems from the difference between three similar-sounding realities:
- A formal suspension of trading (a complete stop to trades on the exchange),
- A restricted trading regime (e.g., once-a-week trading, trade-to-trade settlement, special surveillance rules), and
- Broker-level restrictions (like blocking fresh buys due to margin/ASD requirements).
Lokmat Times explicitly described the situation as not officially suspended in the plain-English sense for all purposes, but effectively frozen for buyers—with a narrow sell-only exit window once a week as the practical outcome for many retail users.
Zerodha’s bulletin supports the reality of a formal “stage” classification (IBC Stage 1) becoming effective on December 22, which is exactly the kind of change that can reshape trading rules, settlement, and what a retail trader sees on-screen. Zerodha
Why exchanges use “once-a-week” frameworks
Surveillance and restriction tools exist for a reason: to reduce disorderly trading when certain risk flags appear—ranging from extreme volatility to insolvency-related uncertainty.
Both NSE’s published surveillance descriptions and broker explainers outline how higher-risk classifications can involve:
- Trade-for-trade settlement
- Tighter price bands
- Higher surveillance deposits/margins
- Reduced trading frequency (once-a-week windows)
From a market-structure perspective, these measures can protect some investors from runaway price spikes and questionable liquidity—but they can also create new risks, especially for retail holders who suddenly lose the ability to freely exit positions on any trading day.
What happens next: key dates and what investors will watch
Lokmat Times reported that selling is expected to resume from Monday, December 29, 2025, and continue each Monday as long as the stock remains under the restricted framework—while warning that liquidity could remain thin and exits may be limited.
In practical terms, the next phase of this story will likely revolve around:
- Whether the exchanges or the company provide clearer public communication explaining the specific trigger for the IBC Stage 1 tag effective December 22.
- How brokers implement the restriction (sell-only vs limited continuous trading, and how holdings are displayed), as investors compare experiences across platforms.
- Whether Reliance Power and other group stocks stabilize once the initial uncertainty fades—or stay volatile if liquidity fears persist.
- Any legal or regulatory updates that clarify the status of insolvency-related proceedings that formed the earlier 2025 backdrop (NCLT admission and the NCLAT stay).
The bigger picture for the Anil Ambani group
The trading shock on December 22 is also landing in a period where investor sensitivity to headline risk around the Anil Ambani business ecosystem remains elevated. For example, Reuters reported in early November 2025 that India’s financial crime agency froze properties worth 75 billion rupees linked to companies of the Reliance Anil Ambani Group as part of a money-laundering probe—an unrelated but sentiment-heavy headline that has kept traders cautious on group names.
That broader context matters because once a stock is pushed into a restricted trading framework, even small bursts of negative sentiment can have outsized price impact due to thin liquidity, fewer counterparties, and fewer trading sessions available for price discovery.
Bottom line
On December 22, 2025, Reliance Infrastructure entered a restricted trading regime (IBC Stage 1 effective today) that—according to broker bulletins and investor communications—can sharply limit how and when retail holders can trade, sometimes showing up as “suspended” behavior on broker screens even when the underlying issue is a surveillance/IBC-stage constraint. Zerodha+2Lokmat Times+2
The knock-on effect hit Reliance Power, which dropped sharply intraday as investors repriced liquidity risk and uncertainty—reported as down about 7% around midday in one update, while an early Business Standard snapshot showed a 2.9% decline.
With the next trading window and any clarifications now the market’s focus, investors will be watching closely for exchange/company communication that explains why the IBC-stage tag took effect on December 22—especially given the well-publicized mid-2025 insolvency-and-stay timeline that preceded it.
