Description
BSE will transfer 8 scrips to 'Z' group effective December 26, 2025 due to non-compliance with Regulation 31 of SEBI LODR for two consecutive quarters (June 2025 & September 2025).
Summary
BSE has issued Notice No. 20251215-21 announcing the transfer of 8 scrips to the ‘Z’ group effective December 26, 2025, due to non-compliance with Regulation 31 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for two consecutive quarters (June 2025 and September 2025). This action is taken pursuant to SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. Trading in these scrips will be conducted on a Trade for Trade basis once transferred to the Z group.
Key Points
- 8 scrips will be transferred to Z group effective December 26, 2025
- Non-compliance relates to Regulation 31 of SEBI LODR for Q2 2025 (June) and Q3 2025 (September)
- Companies have until December 22, 2025 to comply and avoid the transfer
- All trades in Z group will be settled on Trade for Trade basis
- 27 additional companies already in Z group are also non-compliant for the same regulation and quarters
- Action based on SEBI Master Circular dated November 11, 2024 regarding penal actions
Regulatory Changes
This circular implements penal actions prescribed under SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024 for non-compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The action follows the Standard Operating Procedure for suspension and revocation of trading of specified securities of listed entities.
Compliance Requirements
For the 8 Listed Companies Being Transferred:
- Must comply with Regulation 31 of SEBI LODR on or before December 22, 2025 to avoid transfer to Z group
- Regulation 31 requires submission of shareholding pattern within 21 days from the end of each quarter
- Failure to comply by deadline will result in mandatory transfer to Z group
Companies Being Transferred to Z Group (if non-compliant by Dec 22, 2025):
- 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 (also non-compliant): 27 companies including Ankit Metal & Power Ltd, Arshiya Ltd, CMI Ltd, Future Enterprises Ltd, Future Lifestyle Fashions Ltd, Gensol Engineering Ltd, Housing Development and Infrastructure Ltd, Reliance Home Finance Ltd, and others.
Important Dates
- December 15, 2025: Notice issued
- December 22, 2025: Deadline for companies to comply and avoid Z group transfer
- December 26, 2025: Effective date for transfer of non-compliant scrips to Z group
- Non-compliance periods: June 2025 quarter and September 2025 quarter
Impact Assessment
Market Impact:
- Transfer to Z group significantly restricts trading activity as all trades must be settled on Trade for Trade basis (no intraday squaring off)
- Increased trading costs and reduced liquidity for affected securities
- Negative market sentiment for listed companies being transferred
- Rajesh Exports Ltd (531500) is a notably large company being affected
Investor Impact:
- Investors in these scrips will face restricted trading with mandatory delivery-based settlement
- Higher transaction costs due to Trade for Trade mechanism
- Potential price volatility during transition period
- Reduced liquidity may make position exit difficult
Compliance Impact:
- Demonstrates SEBI’s strict enforcement of disclosure requirements
- Sets precedent for penal action against non-compliant listed entities
- 35 total companies (8 new + 27 existing) affected shows widespread compliance issues
- Companies must prioritize timely submission of shareholding patterns to avoid penalties
Operational Impact:
- Market participants must adjust trading systems for Z group settlement
- Brokers need to inform clients about trading restrictions
- Companies face reputational damage and potential investor exodus
Impact Justification
High severity penal action affecting 8 companies being moved to restrictive Z group, limiting trading to trade-for-trade settlement. 27 additional companies already in Z group also non-compliant.