---
title: "What does IRP (Insolvency Resolution Process) mean?"
description: "As per iRage's policy, fresh buying is blocked in stocks under IRP stage 1 and above"
category: arrow
subcategory: trading-faqs
slug: what-does-irp-insolvency-resolution-process-mean
canonical: https://support.arrow.trade/arrow/trading-faqs/what-does-irp-insolvency-resolution-process-mean/
---

# What does IRP (Insolvency Resolution Process) mean?

> As per iRage's policy, fresh buying is blocked in stocks under IRP stage 1 and above

## Short answer

As per iRage's policy, fresh buying is blocked in stocks under IRP stage 1 and above

IRP, or Corporate Insolvency Resolution Process, is a procedure established under the Insolvency and Bankruptcy Code, 2016. The IBC serves as India's bankruptcy legislation.

Financial creditors can initiate the insolvency resolution process when a corporate debtor defaults on repayment of creditors' dues. The creditor must file an application with the National Company Law Tribunal (NCLT) to start the resolution process.

Once the NCLT admits the application, the company's assets freeze for six months. During this period, the NCLT reviews revival options and decides the future course of action through debt resolution, corporate restructuring, or liquidation. This process happens in stages.

## Trading restrictions for IRP stocks

Your holdings of IRP stage 1 and above stocks can only be sold on the first trading day of the week (Monday, or Tuesday if Monday is a trading holiday).

No intraday trading

No Buy Today Sell Tomorrow (BTST)

100% margins apply

Fresh buying blocked for stage 1 and above stocks

Platform visibility: Arrow holdings: IRP stocks appear only on the first trading day of the week Console: IRP stocks remain visible on all trading days

Arrow holdings: IRP stocks appear only on the first trading day of the week

Console: IRP stocks remain visible on all trading days

Exchanges apply additional surveillance mechanisms (WEB) on IRP stocks

Check the list of stocks under Insolvency Resolution Process

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Source: https://support.arrow.trade/arrow/trading-faqs/what-does-irp-insolvency-resolution-process-mean/
Publisher: Arrow / iRage Broking Services LLP