Description
BSE announces transfer of 8 companies to 'Z' group effective December 26, 2025, for failure to comply with Regulation 31 of SEBI LODR for two consecutive quarters (June 2025 & September 2025).
Summary
BSE has announced the transfer of 8 scrips to the ‘Z’ group effective December 26, 2025, due to non-compliance with Regulation 31 (Shareholding Pattern) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for two consecutive quarters - June 2025 and September 2025. The action follows SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. Companies have until December 22, 2025, to comply and avoid the transfer. Additionally, 27 companies already in the ‘Z’ group are noted as continuing non-compliant.
Key Points
- 8 companies will be transferred to ‘Z’ group on December 26, 2025
- Non-compliance relates to Regulation 31 (Shareholding Pattern disclosure) for June 2025 and September 2025 quarters
- Companies have a final compliance deadline of December 22, 2025
- All trades in ‘Z’ group scrips will be settled on Trade-for-Trade basis only
- 27 additional companies already in ‘Z’ group remain non-compliant for the same regulation
- Action based on SEBI Master Circular dated November 11, 2024, regarding penal actions for LODR non-compliance
Regulatory Changes
This circular implements the penal framework under SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, which prescribes standardized penal actions for violations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Standard Operating Procedure for suspension and revocation of trading applies to these specified securities.
Compliance Requirements
For the 8 Companies Being Transferred:
- Must comply with Regulation 31 (Shareholding Pattern disclosure) requirements on or before December 22, 2025
- Failure to comply by deadline will result in automatic transfer to ‘Z’ group on December 26, 2025
- Once in ‘Z’ group, all trading will be restricted to Trade-for-Trade settlement
Companies to be Transferred to ‘Z’ Group:
- Future Consumer Ltd (533400)
- IND Renewable Energy Ltd (536709)
- Master Chemicals Ltd (506867)
- Mediaone Global Entertainment Ltd (503685)
- Rajesh Exports Ltd (531500)
- Unitech International Ltd (531867)
- Vardhman Concrete Ltd (531444)
- Viji Finance Ltd (537820)
Companies Already in ‘Z’ Group (27 companies): Ankit Metal & Power Ltd, Arshiya Ltd, CMI Ltd, Future Enterprises Ltd (including DVR), Future Lifestyle Fashions Ltd, Gensol Engineering Ltd, Housing Development and Infrastructure Ltd, Impex Ferro Tech Ltd, Jaybharat Textiles and Real Estate Ltd, K-Lifestyle & Industries Ltd, Kobo Biotech Ltd, Lakshmi Precision Screws Ltd, Morarjee Textiles Ltd, National Plywood Industries Ltd, Omkar Speciality Chemicals Ltd, Ortel Communications Ltd, Polo Hotels Ltd, Rajvir Industries Ltd, Reliance Home Finance Ltd, Richa Industries Ltd, Setubandhan Infrastructure Ltd, Silveroak Commercials Ltd, SKIL Infrastructure Ltd, Spectra Industries Ltd, Sturdy Industries Ltd, Vikas Proppant & Granite Ltd.
Important Dates
- December 15, 2025: Notice date
- December 22, 2025: Final deadline for companies to comply with Regulation 31 requirements
- December 26, 2025: Effective date for transfer of non-compliant scrips to ‘Z’ group
- Non-compliance period: June 2025 and September 2025 quarters (two consecutive quarters)
Impact Assessment
Market Impact:
- Transfer to ‘Z’ group severely restricts trading liquidity as all transactions must settle on Trade-for-Trade basis
- No intraday trading or squared-off positions allowed
- Full upfront margin requirements apply for both buy and sell sides
- Likely significant price volatility and reduced investor participation
Investor Impact:
- Existing shareholders face reduced liquidity and potential difficulty in exiting positions
- Higher transaction costs due to Trade-for-Trade settlement requirements
- Increased risk perception may lead to sharp price corrections
- Notable impact on Rajesh Exports Ltd, a larger listed entity
Compliance Impact:
- Demonstrates SEBI’s strict enforcement of disclosure requirements under LODR
- Sets precedent for consistent penal action against non-compliant entities
- 35 total companies affected (8 new + 27 existing) highlight widespread compliance issues
- Companies must prioritize timely submission of shareholding patterns to avoid trading restrictions
Operational Impact:
- Brokers and trading members must update systems to enforce Trade-for-Trade settlement
- Increased monitoring and surveillance requirements for ‘Z’ group securities
- Queries to be directed to bse.soplodr@bseindia.com
Impact Justification
High severity as 8 companies face trading restrictions with mandatory Trade-for-Trade settlement, significantly impacting liquidity and investor access. Affects major companies including Rajesh Exports Ltd.