Description

BSE to suspend trading in Vasudhagama Enterprises Ltd from December 1, 2025 for failure to comply with Regulation 27(2) of SEBI LODR 2015 for two consecutive quarters (March 2025 & June 2025).

Summary

BSE has issued notice for suspension of trading in securities of Vasudhagama Enterprises Ltd (Scrip Code: 539291) effective December 1, 2025, due to non-compliance with Regulation 27(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for two consecutive quarters - March 2025 and June 2025. The suspension is issued pursuant to SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The entire promoter shareholding and all securities in promoter demat accounts will be frozen during the suspension period.

Key Points

  • Trading suspension effective from December 1, 2025 (30 days from notice date)
  • Non-compliance relates to Regulation 27(2) - Corporate Governance requirements
  • Two consecutive quarters of non-compliance: March 2025 and June 2025
  • Promoter shareholding freeze: Entire promoter holdings and all securities in promoter demat accounts will be frozen
  • Company can avoid suspension by complying before November 26, 2025
  • Post-suspension, trade-for-trade basis allowed in Z group on first trading day of every week for six months
  • Suspension continues until full compliance and payment of fines

Regulatory Changes

This action is taken under the Standard Operating Procedure for suspension and revocation of trading of specified securities pursuant to SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, which prescribes penal actions for non-compliance with certain provisions of SEBI LODR Regulations 2015.

Compliance Requirements

For Vasudhagama Enterprises Ltd:

  • Must comply with all provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 to the satisfaction of BSE
  • Deadline for compliance to avoid suspension: November 26, 2025
  • Must pay all applicable fines
  • Must follow prescribed procedure and extant norms for revocation of suspension
  • Specifically must address Regulation 27(2) non-compliance

For Market Participants:

  • Note the suspension effective date and restrictions
  • Be aware of promoter shareholding freeze
  • Plan for trade-for-trade restrictions if suspension is implemented

Important Dates

  • October 29, 2025: Notice issued
  • November 26, 2025: Last date for company to comply and avoid suspension
  • December 1, 2025: Trading suspension becomes effective (if company fails to comply)
  • 15 days after suspension: Trade-for-trade basis allowed in Z group on first trading day of every week for six months

Impact Assessment

Market Impact:

  • Complete halt in normal trading of Vasudhagama Enterprises Ltd securities
  • Severe liquidity constraints for existing shareholders
  • Limited trading opportunity through trade-for-trade mechanism post-suspension

Company Impact:

  • Reputational damage due to regulatory non-compliance
  • Frozen promoter shareholding restricts promoter transactions
  • Potential difficulty in capital raising and business operations
  • Need to pay accumulated fines and compliance costs

Investor Impact:

  • Existing shareholders face illiquidity and potential price impact
  • No normal exit opportunity during suspension period
  • Limited weekly trading window on trade-for-trade basis after 15 days
  • Increased counterparty risk due to Z group classification

Regulatory Significance: Demonstrates SEBI’s strict enforcement of corporate governance and disclosure requirements under LODR Regulations, particularly Regulation 27(2) compliance.

Impact Justification

Complete trading suspension for non-compliance with corporate governance requirements, affecting investor access and promoter shareholdings