Description
BSE will transfer 8 scrips to 'Z' group effective October 27, 2025, due to non-compliance with quarterly financial results filing requirements for two consecutive quarters (March 2025 & June 2025).
Summary
BSE has announced the transfer of 8 company scrips to the ‘Z’ group effective October 27, 2025, as a penal measure for non-compliance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These companies failed to file quarterly financial results for two consecutive quarters - March 2025 and June 2025. Companies have until October 20, 2025, to comply and avoid the transfer. Additionally, 37 companies already in the ‘Z’ group remain non-compliant for the same periods.
Key Points
- 8 scrips will be transferred to ‘Z’ group from October 27, 2025
- Non-compliance relates to Regulation 33 (quarterly financial results) for March 2025 & June 2025
- Companies have a grace period until October 20, 2025, to comply and avoid transfer
- All trades in ‘Z’ group will be settled on Trade-for-Trade basis only
- 37 additional companies already in ‘Z’ group continue to remain non-compliant
- Action is pursuant to SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024
Regulatory Changes
This circular implements penal actions prescribed under SEBI’s Master Circular and Standard Operating Procedure for suspension and revocation of trading. The transfer to ‘Z’ group is a surveillance measure to protect investor interests when companies fail to meet basic disclosure requirements under SEBI LODR Regulations.
Compliance Requirements
For the 8 Companies Being Transferred:
- A.F. Enterprises Ltd (538351)
- Ashiana Ispat Ltd (513401)
- BF Utilities Ltd (532430)
- Gensol Engineering Ltd (542851)
- Inditrade Capital Ltd (532745)
- Northlink Fiscal and Capital Services Ltd (539110)
- Simbhaoli Sugars Ltd (539742)
- Vintron Informatics Ltd (517393)
Action Required: File overdue quarterly financial results for March 2025 and June 2025 quarters on or before October 20, 2025, to avoid transfer to ‘Z’ group.
For Already Non-Compliant Companies: 37 companies already in ‘Z’ group must file their pending quarterly results to restore normal trading status.
For Market Participants: Prepare for Trade-for-Trade settlement in these scrips with no intraday trading or square-off allowed.
Important Dates
- October 14, 2025: Notice date and publication
- October 20, 2025: Last date for companies to comply and avoid transfer to ‘Z’ group
- October 27, 2025: Effective date of transfer to ‘Z’ group (if non-compliance continues)
- Non-compliance periods: March 2025 quarter and June 2025 quarter
Impact Assessment
Trading Impact:
- Severe liquidity constraints as all trades will be on Trade-for-Trade basis
- No intraday trading allowed; only delivery-based transactions
- Increased settlement risk and reduced market participation
- Price discovery mechanism severely impaired
Investor Impact:
- Existing shareholders face difficulty in exiting positions
- Higher impact costs due to reduced liquidity
- Increased volatility potential
- Reputational damage to companies affecting investor confidence
Company Impact:
- Significant reputational damage and loss of investor trust
- Difficulty in raising capital
- Potential further regulatory action if non-compliance continues
- Classification as high-risk investment affecting institutional participation
Market Impact:
- 45 total companies (8 new + 37 existing) in non-compliance highlights governance concerns
- Demonstrates SEBI’s strict enforcement of disclosure norms
- Sets precedent for timely financial reporting compliance
Impact Justification
Transfer to Z group significantly restricts trading liquidity with Trade-for-Trade settlement, impacting 8 companies and their shareholders. Indicates serious compliance failures in financial reporting.