Description

BSE announces transfer of 30 scrips to 'Z'/'MT' group effective December 12, 2025, due to non-compliance with annual report filing requirements for FY 2024 and FY 2025.

Summary

BSE has issued Notice No. 20251201-54 announcing the transfer of 30 scrips to the ‘Z’/‘MT’ (Z-group/MT-group) segment effective December 12, 2025. These companies have failed to comply with Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for two consecutive financial years (March 2024 and March 2025), relating to annual report filing requirements. All these companies are already in the ‘Z’/‘MT’ group, and this action reinforces their restricted trading status. Trading in these scrips will be conducted on a Trade-for-Trade basis only.

Key Points

  • 30 scrips will remain in ‘Z’/‘MT’ group due to continued non-compliance
  • Non-compliance relates to Regulation 34 of SEBI LODR 2015 (annual report filing)
  • Companies failed to comply for two consecutive financial years: FY 2024 and FY 2025
  • Effective date: December 12, 2025
  • All affected companies are already in ‘Z’/‘MT’ group
  • Trades will be settled on Trade-for-Trade basis (no intraday trading allowed)
  • Action taken 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 Standard Operating Procedure for suspension and revocation of trading of specified securities. The action is based on SEBI’s Master Circular dated November 11, 2024, which prescribes penalties for non-compliance with LODR Regulations. Regulation 34 specifically requires listed entities to file annual reports including financial statements, auditor’s report, board’s report, and other mandatory disclosures within prescribed timelines.

Compliance Requirements

For Listed Companies:

  • Must file annual reports as per Regulation 34 of SEBI LODR 2015
  • Failure to comply for two consecutive years results in transfer/continuation in ‘Z’/‘MT’ group
  • Companies must rectify non-compliance to exit restrictive trading segments

For Market Participants:

  • All trades in these 30 scrips must be executed on Trade-for-Trade basis
  • No intraday trading or speculative positions allowed
  • Investors must take/give delivery of shares traded
  • Enhanced due diligence required when dealing with ‘Z’/‘MT’ group stocks

For Queries:

Important Dates

  • Notice Date: December 01, 2025
  • Effective Date: December 12, 2025
  • Non-Compliance Period: March 2024 and March 2025 (two consecutive financial years)

Impact Assessment

Market Impact:

  • Severe liquidity constraints as scrips continue in Trade-for-Trade segment
  • No intraday trading eliminates speculative activity and day-trading opportunities
  • Reduced market participation from retail and institutional investors
  • Potential price volatility due to restricted trading mechanisms

Investor Impact:

  • Existing shareholders face continued difficulty in exiting positions
  • Mandatory delivery requirement increases capital commitment
  • Higher settlement risk due to compulsory demat delivery
  • Limited price discovery due to reduced trading volumes

Operational Impact:

  • Brokers must ensure proper client awareness about Trade-for-Trade restrictions
  • Enhanced surveillance on these scrips by exchange
  • Companies face reputational damage and potential delisting risk if non-compliance continues

Companies Affected: The 30 companies include Ankit Metal & Power Ltd, Arshiya Ltd, Baron Infotech Ltd, Benara Bearings and Pistons Ltd, BKM Industries Ltd, Future Enterprises Ltd, Future Lifestyle Fashions Ltd, Gayatri Projects Ltd, Golden Tobacco Ltd, Housing Development and Infrastructure Ltd, IL&FS Transportation Networks Ltd, Jaybharat Textiles and Real Estate Ltd, K-Lifestyle & Industries Ltd, Kobo Biotech Ltd, Lakshmi Precision Screws Ltd, MEP Infrastructure Developers Ltd, Morarjee Textiles Ltd, National Plywood Industries Ltd, Omkar Speciality Chemicals Ltd, Ortel Communications Ltd, Polo Hotels Ltd, Rajeswari Infrastructure Ltd, Rajvir Industries Ltd, RCI Industries & Technologies Ltd, Setubandhan Infrastructure Ltd, Silveroak Commercials Ltd, SKIL Infrastructure Ltd, Spectra Industries Ltd, Sturdy Industries Ltd, and Vikas Proppant & Granite Ltd.

Impact Justification

High severity due to trading restrictions on 30 companies for persistent regulatory non-compliance. These scrips will trade on Trade-for-Trade basis with no intraday trading, significantly impacting liquidity and investor participation.