Description

NSE updates surveillance measures for companies under Insolvency and Bankruptcy Code, affecting 7 securities in Stage I and multiple companies under corporate announcement monitoring.

Summary

NSE has updated the Additional Surveillance Measure (ASM) framework for companies under the Insolvency and Bankruptcy Code (IBC). The circular introduces staged surveillance with companies categorized into Stage I and Stage II based on their IBC status, along with a separate category for companies requiring corporate announcement disclosures.

Key Points

  • ATMASTCO Limited added to corporate announcement/disclosure monitoring effective September 09, 2025
  • SWANDEF (Swan Defence and Heavy Industries Limited) moved to ASM Stage I under IBC
  • No securities moved between Stage I and Stage II during this update
  • Consolidated list shows 7 securities in ASM Stage I and 11+ securities under corporate announcement monitoring
  • Framework includes provisions for stage transitions and exclusions from ASM

Regulatory Changes

  • Implementation of staged surveillance approach for IBC companies
  • Stage I: Initial surveillance level for companies under IBC
  • Stage II: Enhanced surveillance level (currently no securities listed)
  • Corporate announcement category for companies requiring specific disclosure monitoring
  • Provisions for moving securities between stages based on compliance status

Compliance Requirements

  • Companies under ASM must comply with enhanced disclosure requirements
  • Securities in Stage I subject to additional trading restrictions and monitoring
  • Companies in corporate announcement category must provide timely disclosures
  • Listed companies must maintain compliance to avoid stage escalation

Important Dates

  • September 09, 2025: Effective date for all surveillance measure changes
  • September 09, 2025: ATMASTCO Limited added to corporate announcement monitoring
  • September 09, 2025: SWANDEF moved to ASM Stage I

Impact Assessment

  • Enhanced monitoring may affect trading liquidity for listed securities
  • Investors should exercise caution when trading securities under ASM
  • Stage-based approach provides clearer framework for surveillance escalation
  • Corporate announcement requirements ensure better transparency for distressed companies
  • No immediate exclusions from ASM, indicating continued regulatory scrutiny

Impact Justification

Affects trading conditions for multiple securities under IBC proceedings with staged surveillance measures