Description

NSE updates the list of securities under Additional Surveillance Measure (ASM) for companies under Insolvency and Bankruptcy Code (IBC), adding Swan Defence and Heavy Industries Limited to Stage I effective November 12, 2025.

Summary

The National Stock Exchange has updated the list of securities subject to Additional Surveillance Measure (ASM) for companies under the Insolvency and Bankruptcy Code (IBC). Effective November 12, 2025, Swan Defence and Heavy Industries Limited (SWANDEF) has been added to ASM IBC Stage I. The circular references the ASM IBC framework established through previous circulars dated June 08, 2018, May 20, 2022, February 10, 2023, and September 05, 2025.

Key Points

  • Swan Defence and Heavy Industries Limited (SWANDEF, ISIN: INE542F01020) added to ASM IBC Stage I
  • No securities added based on receipt of corporate announcements/disclosures
  • No securities moved between Stage I and Stage II
  • No securities excluded from ASM IBC framework
  • ASM IBC framework operates in conjunction with all other prevailing surveillance measures
  • Shortlisting is purely for market surveillance purposes and not an adverse action against the company

Regulatory Changes

The ASM for companies under IBC continues the framework established in previous circulars. The surveillance measure applies enhanced monitoring and trading restrictions to securities of companies undergoing insolvency proceedings or meeting specific IBC-related criteria. Stage I represents the initial level of surveillance, with Stage II indicating heightened surveillance measures.

Compliance Requirements

  • All NSE members must note the updated list of securities under ASM IBC
  • Trading members should apply enhanced due diligence for transactions in affected securities
  • Members must comply with all surveillance measures applicable to ASM IBC securities
  • For queries, members should contact surveillance@nse.co.in

Important Dates

  • Circular Issue Date: November 11, 2025
  • Effective Date: November 12, 2025 - ASM IBC surveillance measures apply to SWANDEF

Impact Assessment

Market Impact: Addition to ASM IBC Stage I subjects Swan Defence and Heavy Industries Limited to enhanced surveillance, which typically results in reduced liquidity, wider bid-ask spreads, and potential price volatility. The consolidated list shows at least 4 securities remain under ASM IBC surveillance (EASTSILK, GOENKA, JPASSOCIAT, and now SWANDEF).

Operational Impact: Trading members must implement additional monitoring and risk management protocols for SWANDEF. The surveillance framework may include trade-for-trade settlement, price bands, or other restrictions depending on the stage level.

Investor Impact: Investors holding or trading SWANDEF should be aware of the enhanced surveillance status, which indicates regulatory concerns related to insolvency proceedings or financial distress. This designation serves as a risk indicator for market participants.

Impact Justification

Addition to ASM under IBC significantly impacts trading conditions with stricter surveillance measures, affecting liquidity and investor sentiment for the affected security