Description

BSE updates surveillance measures for companies under Insolvency and Bankruptcy Code (IBC), with Swan Defence and Heavy Industries Ltd moving to Stage 1 surveillance effective November 12, 2025.

Summary

BSE has updated the Additional Surveillance Measure (ASM) framework for companies undergoing Insolvency Resolution Process (IRP) under the Insolvency and Bankruptcy Code (IBC). Effective November 12, 2025, Swan Defence And Heavy Industries Ltd (Scrip Code: 533107, ISIN: INE542F01020) has been placed under Stage 1 surveillance. No securities are moving to Stage 0, transitioning between stages, or being excluded from the framework in this update.

Key Points

  • Swan Defence And Heavy Industries Ltd added to IBC Stage 1 surveillance effective November 12, 2025
  • No securities moved to Stage 0 (receipt of corporate announcement/disclosure)
  • No securities transitioned from Stage I to Stage II or vice versa
  • No securities excluded from ASM for IBC framework
  • Consolidated list maintains multiple securities across different IBC stages including companies like Aban Offshore, AGS Transact Technologies, Alchemist Ltd, and others
  • Framework includes special markings for T+0 scrips and recommencement scrips

Regulatory Changes

The circular implements the ongoing IBC surveillance framework with stage-based monitoring:

  • Stage 0: Receipt of corporate announcement/disclosure from company regarding insolvency matters
  • Stage 1: Additional Surveillance Measure for companies in active Insolvency Resolution Process
  • Stage 2: Enhanced surveillance for advanced insolvency proceedings

Special categories include securities marked with (~) for T+0 scrips shortlisted in IBC framework as per parent company, and (^) for recommencement scrips.

Compliance Requirements

  • Market participants must adjust risk parameters for Swan Defence And Heavy Industries Ltd under Stage 1 surveillance
  • Brokers and investors should be aware of enhanced surveillance applicability for IBC-affected securities
  • Trading members must comply with applicable margin and surveillance requirements for all securities listed in the consolidated framework
  • Investors should exercise caution when trading securities under IBC surveillance stages

Important Dates

  • Effective Date: November 12, 2025 - Swan Defence And Heavy Industries Ltd enters Stage 1 IBC surveillance
  • Circular Date: November 11, 2025

Impact Assessment

Market Impact: High - IBC Stage 1 classification indicates formal insolvency proceedings for Swan Defence And Heavy Industries Ltd, which typically results in increased volatility, higher trading margins, and reduced liquidity. Investors face elevated risk of capital loss.

Trading Impact: Securities under IBC surveillance face additional restrictions and monitoring, potentially including price bands, trading limits, and enhanced margin requirements. The consolidated list shows 13+ securities already under various IBC stages, indicating continued regulatory focus on distressed companies.

Investor Impact: Shareholders of affected companies face significant uncertainty regarding recovery prospects. Stage 1 classification serves as a clear warning signal for heightened investment risk and potential delisting scenarios depending on resolution outcomes.

Annexure Details

Annexure I - New Additions (Effective November 12, 2025):

  • Swan Defence And Heavy Industries Ltd (533107 / INE542F01020) - Added to Stage 1

Annexure III - Consolidated List includes securities at various stages such as:

  • A.F. Enterprises Ltd, Aban Offshore Ltd, AGS Transact Technologies Ltd, Alchemist Ltd, Ambition Mica Limited, Ankit Metal & Power Ltd, Ansal Properties & Infrastructure Ltd, Arshiya Limited (Stage 0)
  • Axis Solutions Ltd (Stage 1)
  • Multiple other securities under receipt of corporate announcement stage

Impact Justification

IBC surveillance measures significantly impact trading and investor risk for affected securities. Swan Defence moving to Stage 1 indicates formal insolvency resolution process initiation.