Description

BSE updates surveillance measures for companies under Insolvency and Bankruptcy Code (IBC), adding Swan Defence And Heavy Industries Ltd and Vas Infrastructure Ltd to Stage 1 surveillance effective January 09, 2026.

Summary

BSE has issued an update on surveillance measures for securities of companies under the Insolvency Resolution Process (IRP) as per the Insolvency and Bankruptcy Code (IBC). Effective January 09, 2026, two companies have been added to Stage 1 surveillance: Swan Defence And Heavy Industries Ltd (Scrip Code: 533107, ISIN: INE542F01020) and Vas Infrastructure Ltd (Scrip Code: 531574, ISIN: INE192C01013). No securities are being moved between stages or excluded from surveillance in this update.

Key Points

  • Two securities added to Stage 1 Additional Surveillance Measure for IBC companies
  • Swan Defence And Heavy Industries Ltd (533107) newly added to IBC Stage 1 surveillance
  • Vas Infrastructure Ltd (531574) newly added to IBC Stage 1 surveillance
  • No securities moved from Stage 1 to Stage 2 or vice versa
  • No securities excluded from IBC surveillance framework
  • No new entries at Stage 0 (receipt of corporate announcement/disclosure)
  • Consolidated list includes numerous companies across different IBC stages

Regulatory Changes

The circular implements the Additional Surveillance Measure (ASM) framework for companies undergoing Insolvency Resolution Process under IBC. This framework categorizes securities into different stages:

  • Stage 0: Receipt of corporate announcement/disclosure from the company regarding IBC proceedings
  • Stage 1: Companies in active insolvency resolution process with enhanced surveillance
  • Stage 2: Companies with prolonged or complex IBC proceedings requiring stricter monitoring

The consolidated list shows over 13 companies currently under various stages of IBC surveillance, indicating ongoing monitoring of distressed securities in the market.

Compliance Requirements

  • Trading members must be aware of securities under IBC surveillance framework
  • Enhanced due diligence required for trades in securities under ASM for IBC
  • Investors should note the increased risk profile of securities listed under IBC stages
  • Market participants must comply with any trading restrictions applicable to IBC-flagged securities
  • Brokers should inform clients about the surveillance status of these securities

Important Dates

  • Effective Date: January 09, 2026 - New surveillance measures become applicable
  • Circular Date: January 08, 2026 - Date of circular issuance

Impact Assessment

Market Impact: The addition of Swan Defence And Heavy Industries Ltd and Vas Infrastructure Ltd to Stage 1 IBC surveillance will likely result in reduced liquidity and increased volatility for these securities. Trading volumes may decline as institutional investors and risk-averse traders avoid or reduce exposure.

Investor Risk: Securities under IBC surveillance carry significantly elevated risk due to the ongoing insolvency proceedings. Shareholders face potential dilution or complete loss of investment if resolution plans involve debt restructuring or liquidation.

Trading Implications: Enhanced surveillance typically involves stricter price bands, trade-for-trade settlement, or other restrictions that limit speculative activity. Market participants should exercise heightened caution when dealing with these securities.

Regulatory Monitoring: BSE’s proactive surveillance framework helps protect investors by clearly identifying companies under financial distress and insolvency proceedings, promoting market transparency and informed decision-making.

Impact Justification

Addition of securities to IBC surveillance framework directly impacts trading and investor risk assessment for companies undergoing insolvency resolution process