Description

BSE updates the list of securities under Additional Surveillance Measure related to Insolvency and Bankruptcy Code (IBC) proceedings, with two securities moving to Stage 1.

Summary

BSE has updated its surveillance framework for securities under the Insolvency and Bankruptcy Code (IBC) effective January 09, 2026. Two securities have been newly shortlisted in Additional Surveillance Measure Stage 1 for companies undergoing Insolvency Resolution Process (IRP). No securities moved to Stage 0, from Stage I to Stage II, from Stage II to Stage I, or were excluded from the framework.

Key Points

  • Two securities added to IBC Stage 1 ASM: Swan Defence And Heavy Industries Ltd (Scrip Code: 533107, ISIN: INE542F01020) and Vas Infrastructure Ltd (Scrip Code: 531574, ISIN: INE192C01013)
  • No securities moved to Stage 0 (Receipt of corporate announcement/disclosure)
  • No securities progressed from Stage I to Stage II
  • No securities regressed from Stage II to Stage I
  • No securities excluded from IBC surveillance framework
  • Consolidated list includes 13+ securities across various IBC stages including companies like A.F. Enterprises Ltd, Aanchal Ispat Ltd, Aban Offshore Ltd, and others

Regulatory Changes

This circular implements the ongoing surveillance mechanism under the IBC framework. Securities under IRP are subject to Additional Surveillance Measures with progressive stages (Stage 0, Stage 1, Stage 2) based on the status of insolvency proceedings. The framework helps investors identify securities where companies are undergoing insolvency resolution.

Compliance Requirements

  • Market participants should note the securities under IBC surveillance for risk assessment
  • Trading members must be aware of enhanced surveillance applicable to these securities
  • Investors should exercise caution when trading in securities under IBC proceedings
  • Companies must provide timely disclosures regarding their insolvency status

Important Dates

  • Effective Date: January 09, 2026 - New surveillance measures come into effect

Impact Assessment

Market Impact: The addition of Swan Defence And Heavy Industries Ltd and Vas Infrastructure Ltd to Stage 1 surveillance indicates these companies have entered formal insolvency resolution process. This typically results in increased trading restrictions, higher risk perception, and potential liquidity constraints for these securities.

Investor Impact: Investors holding or considering these securities face elevated risk due to the ongoing insolvency proceedings. Stage 1 classification signals that the company has disclosed insolvency-related corporate announcements and is under enhanced monitoring.

Operational Impact: The consolidated list of 13+ securities under various IBC stages provides transparency to market participants about companies facing financial distress, enabling informed investment decisions and risk management.

Impact Justification

Routine surveillance update affecting two securities entering IBC Stage 1, indicating insolvency resolution process initiation which impacts trading and investor risk assessment