Description

NSE circular regarding securities under Additional Surveillance Measure (ASM) framework for companies under Insolvency and Bankruptcy Code, with exclusions for certain securities effective January 1, 2026.

Summary

NSE has issued circular 1014/2025 regarding the Additional Surveillance Measure (ASM) framework for companies under the Insolvency and Bankruptcy Code (IBC). No new securities are being added to ASM IBC framework. Two securities (SEYAIND and SWANDEF) are moving to corporate announcement monitoring status, and one security (WAAREEINDO) is being excluded from ASM IBC framework, effective January 1, 2026.

Key Points

  • No securities have satisfied criteria for ASM IBC inclusion (Annexure I shows nil entries for all stages)
  • Two securities moving to corporate announcement/disclosure monitoring: Seya Industries Limited (SEYAIND) and Swan Defence and Heavy Industries Limited (SWANDEF)
  • One security being excluded from ASM IBC: Indosolar Limited (WAAREEINDO)
  • ASM IBC framework operates in conjunction with all other prevailing surveillance measures
  • Price band of securities exiting the framework will be reinstated to pre-ASM levels unless subject to other surveillance measures
  • Shortlisting under ASM IBC is purely for market surveillance and not an adverse action against the company

Regulatory Changes

This circular references previous circulars NSE/SURV/37979 (June 8, 2018), NSE/SURV/52368 (May 20, 2022), NSE/SURV/55582 (February 10, 2023), and NSE/SURV/70074 (September 5, 2025) establishing the ASM IBC framework. The current update modifies the list of securities under surveillance without changing the underlying framework rules.

Compliance Requirements

  • Market participants must note that ASM IBC framework applies alongside all other surveillance measures
  • Members should monitor the status of affected securities and adjust trading parameters accordingly
  • Price band adjustments will be automatic for securities exiting the framework
  • Queries should be directed to surveillance@nse.co.in

Important Dates

  • Circular Date: December 31, 2025
  • Effective Date: January 1, 2026 for all surveillance measure changes
  • Circular Reference: NSE/SURV/72101, Circular No. 1014/2025

Impact Assessment

Securities Moving to Corporate Announcement Monitoring (Annexure II):

  • Seya Industries Limited (SEYAIND) - ISIN: INE573R01012
  • Swan Defence and Heavy Industries Limited (SWANDEF) - ISIN: INE542F01020

These securities will continue under monitoring but at a less stringent level, indicating some improvement in their IBC-related status.

Securities Excluded from ASM IBC:

  • Indosolar Limited (WAAREEINDO) - ISIN: INE866K0 (incomplete in source)

This exclusion indicates the security has satisfied criteria to exit IBC surveillance, likely resulting in price band normalization and potentially improved market sentiment.

Market Impact: Limited to the three affected securities. Exclusion from ASM typically results in improved liquidity and reduced trading restrictions. No new securities being added indicates stable market conditions regarding IBC cases.

Impact Justification

Circular updates surveillance measures for IBC companies with exclusions for specific securities, moderate market impact limited to affected stocks