Description
BSE to transfer 8 scrips to 'Z' group from October 27, 2025, due to non-compliance with Regulation 33 (quarterly financial results) for two consecutive quarters (March 2025 & June 2025).
Summary
BSE has issued a notice to transfer 8 scrips to the ‘Z’ group effective October 27, 2025, due to non-compliance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for two consecutive quarters (March 2025 and June 2025). The 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 regulation. All trades in ‘Z’ group scrips will be settled on a Trade for Trade basis.
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 and June 2025 quarters
- Companies can avoid transfer by complying before October 20, 2025
- 37 companies already in ‘Z’ group continue to be non-compliant for same regulation
- Trades in ‘Z’/‘ZP’/‘ZY’/‘MT’ groups will be settled on Trade for Trade basis
- Action taken pursuant to SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024
Regulatory Changes
No new regulatory changes introduced. This circular implements existing penal actions prescribed under SEBI Master Circular for non-compliance with SEBI (LODR) Regulations, 2015, specifically the Standard Operating Procedure for suspension and revocation of trading of specified securities.
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)
Required Action: File pending quarterly financial results for March 2025 and June 2025 quarters as per Regulation 33 of SEBI (LODR) Regulations, 2015 by October 20, 2025, to avoid transfer to ‘Z’ group.
For 37 Companies Already in Z Group: Continue to remain non-compliant for Regulation 33 for March 2025 and June 2025 quarters (full list provided in circular).
Important Dates
- October 14, 2025: Notice date
- October 20, 2025: Last date for companies to comply and avoid Z group transfer
- October 27, 2025: Effective date for transfer of 8 scrips to ‘Z’ group
- March 2025 Quarter: First quarter of non-compliance
- June 2025 Quarter: Second consecutive quarter of non-compliance
Impact Assessment
Trading Impact:
- Scrips moved to ‘Z’ group face severe liquidity constraints due to Trade for Trade settlement
- No intraday trading allowed; all positions must be taken for delivery
- Increased settlement risk and reduced investor interest
- Higher impact costs for trading these securities
Investor Impact:
- Investors in these 8 companies face restricted liquidity and potential price discovery issues
- Existing shareholders may find it difficult to exit positions
- Reputational damage to companies affects investor confidence
Company Impact:
- Severe reputational damage and market credibility loss
- Difficulty in raising capital or conducting corporate actions
- May trigger additional regulatory scrutiny or delisting proceedings if non-compliance continues
- Total of 45 companies (8 new + 37 existing) now face Z group restrictions
Market Impact:
- Demonstrates SEBI’s strict enforcement of financial disclosure requirements
- Sends strong signal to listed companies about compliance importance
- Market participants need to exercise enhanced due diligence for Z group securities
Impact Justification
Affects liquidity and trading operations for 8 companies being moved to Z group with trade-for-trade settlement, indicating serious compliance violations. 37 additional companies already in Z group for same violations.