Description
BSE to 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 announced the transfer of 8 scrips to the ‘Z’ group effective December 26, 2025, due to non-compliance with Regulation 31 (shareholding pattern submission) of SEBI LODR Regulations for two consecutive quarters (June 2025 and September 2025). The circular is issued pursuant to SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, regarding penal actions for non-compliance. Companies have until December 22, 2025 to comply and avoid the transfer. Additionally, 27 companies already in Z group remain non-compliant for the same violations.
Key Points
- 8 scrips will be transferred to ‘Z’ group from December 26, 2025
- Non-compliance relates to Regulation 31 (shareholding pattern) for June 2025 and September 2025 quarters
- Companies can avoid transfer by complying before December 22, 2025
- All trades in Z group will be settled on Trade for Trade (T4T) basis
- 27 companies already in Z group continue to be non-compliant for same regulation
- Action taken pursuant to SEBI Master Circular dated November 11, 2024
Regulatory Changes
No new regulatory changes. This circular implements existing penal provisions under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for non-compliance with Regulation 31 requirements.
Compliance Requirements
For Listed Companies:
- Must submit shareholding pattern as required under Regulation 31 of SEBI LODR Regulations
- Compliance must be completed by December 22, 2025 to avoid Z group transfer
- Need to address non-compliances for June 2025 and September 2025 quarters
For Market Participants:
- All trades in scrips transferred to Z group will be on Trade for Trade basis only
- Enhanced monitoring required for affected securities
- Queries to be directed to bse.soplodr@bseindia.com
Important Dates
- December 15, 2025: Notice issued
- December 22, 2025: Last date for companies to comply and avoid Z group transfer
- December 26, 2025: Effective date for transfer of 8 scrips to Z group
Affected Companies
Scrips to be transferred to Z group (8 companies):
- 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 with same non-compliance (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.
Impact Assessment
Market Impact:
- Transfer to Z group significantly restricts liquidity as trading moves to Trade for Trade basis
- No intraday trading or squaring off positions allowed
- Likely negative impact on share prices due to reduced trading flexibility
- Increased transaction costs and settlement risks for investors
Investor Impact:
- Existing shareholders face liquidity constraints
- Difficulty in exiting positions at favorable prices
- Enhanced risk profile for these securities
- Limited participation from institutional and retail investors
Company Impact:
- Reputational damage from Z group classification
- Difficulty in raising capital
- Potential further regulatory action if non-compliance continues
- Need for immediate remedial measures to restore normal trading status
Compliance Perspective:
- Highlights importance of timely regulatory filings
- Demonstrates SEBI’s strict enforcement of disclosure norms
- Sets precedent for penal action on persistent non-compliance
- Companies must prioritize Regulation 31 compliance to avoid similar sanctions
Impact Justification
High impact for affected companies and shareholders as transfer to Z group restricts trading to trade-for-trade basis, significantly reducing liquidity and potentially causing price volatility.