Why You Cannot Trade Swan Defence and Heavy Industries: Trading Restrictions Explained
Current Trading Status and Restrictions
Swan Defence and Heavy Industries Limited (formerly known as Reliance Naval and Engineering Limited) resumed trading on both NSE and BSE on January 20, 2025, after being suspended from trading since July 14, 2023 [1][2][3]. However, the company's shares are now listed in the 'T' Group of Securities, which imposes significant trading restrictions that may be preventing you from trading normally [4][5].
What is T Group Trading?
The 'T' Group classification is a special category used by Indian stock exchanges, particularly BSE, to identify higher-risk stocks that require additional surveillance [6][7]. This classification comes with several mandatory restrictions:
Key Trading Restrictions in T Group
Mandatory Delivery Requirement: Every transaction in T Group stocks requires mandatory delivery, meaning you cannot engage in intraday trading [4][5][8]. Unlike regular stocks where you can buy and sell on the same day without taking delivery, T Group stocks necessitate the actual transfer of shares from seller to buyer.
No Intraday Trading: You cannot perform intraday trades, which means buying and selling the same stock on the same trading day is not permitted [5][8][7].
No BTST/STBT Trading: Buy Today, Sell Tomorrow (BTST) or Sell Today, Buy Tomorrow (STBT) trading strategies are completely prohibited for T Group stocks [4][5][8].
Settlement Cycle: All T Group stock transactions follow a rolling settlement cycle of T+1 days, requiring shares to be credited or debited from your demat account by the next business day [8].
Historical Context: Why Swan Defence Was Suspended
Swan Defence shares were suspended from trading on July 14, 2023, due to "procedural reasons" related to capital reduction pursuant to an NCLT (National Company Law Tribunal) order dated December 23, 2022 [9][10][11]. The company underwent a corporate insolvency resolution process, during which Swan Energy Limited acquired management control through its special purpose vehicle, Hazel Infra Limited [11][3].
The suspension lasted approximately 1.5 years while the company underwent significant restructuring, including:
- A share conversion ratio of 275 old RNEL shares for 1 new Swan Defence share [12]
- Rebranding from Reliance Naval and Engineering Limited to Swan Defence and Heavy Industries Limited [3][12]
- Operational revival under Swan Energy's management [3][13]
Why Your Broker May Not Allow Trading
Several factors could be preventing you from trading Swan Defence shares:
Broker Platform Limitations
Some trading platforms may not support T Group stock trading or may have additional verification requirements for such high-risk securities [6][8]. You may need to specifically enable T Group trading in your account settings or contact your broker.
Margin Requirements
T Group stocks often require higher margins and stricter compliance with delivery obligations [8]. Your broker may require you to have sufficient funds upfront since intraday trading is not permitted.
Risk Warnings
Many brokers implement additional warnings or confirmation steps for T Group stocks due to their high volatility and mandatory delivery requirements [6][7].
Current Market Performance
As of recent trading sessions, Swan Defence shares have shown significant volatility:
- The stock opened at ₹35.99 on January 20, 2025, and hit the 5% upper circuit limit at ₹37.78 [2][12]
- Current trading range shows prices between ₹188-₹208 with high volatility [14][15][16]
- The stock has a 52-week high of ₹207.60 and a 52-week low of ₹35.99 [15][17]
How to Trade Swan Defence Shares
If you want to trade Swan Defence shares, you need to:
- Enable T Group Trading: Contact your broker to ensure your account is enabled for T Group stock trading [5][8]
- Ensure Adequate Funds: Have sufficient funds for mandatory delivery since intraday trading is not allowed [8][7]
- Plan for Delivery: Be prepared to take actual delivery of shares in your demat account [4][5]
- Understand Circuit Limits: The stock trades within 5% circuit limits, meaning daily price movement is capped at 5% either way [6]
Conclusion
Your inability to trade Swan Defence and Heavy Industries is likely due to the stock being classified in the T Group of Securities, which requires mandatory delivery and prohibits intraday trading [4][5]. The company only resumed trading in January 2025 after an 18-month suspension, and the restrictive T Group classification is designed to protect investors from the high volatility and risks associated with the stock [2][6]. To trade these shares, ensure your broker account supports T Group trading and be prepared for the mandatory delivery requirements.