Description

BSE to transfer GV Films Ltd to 'Z' group effective January 09, 2026 due to non-compliance with SEBI LODR Regulations 17(1)/18(1) for two consecutive quarters (June 2025 & September 2025).

Summary

BSE has announced the transfer of GV Films Ltd (Scrip Code: 523277) to the ‘Z’ group effective January 09, 2026, due to non-compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - specifically Regulations 17(1) and 18(1) regarding composition of Board of Directors and Committees - for two consecutive quarters (June 2025 and September 2025). The company has until January 06, 2026 to rectify the non-compliance and avoid the transfer. Additionally, Amit International Ltd (Scrip Code: 531300) remains in Z group for similar non-compliance with Regulation 18(1).

Key Points

  • GV Films Ltd (Scrip Code: 523277) will be transferred to ‘Z’ group effective January 09, 2026
  • Non-compliance relates to Regulations 17(1) and 18(1) of SEBI LODR 2015
  • Non-compliance period: Two consecutive quarters (June 2025 & September 2025)
  • Last date to comply and avoid transfer: January 06, 2026
  • Amit International Ltd (531300) already in Z group for Regulation 18(1) non-compliance for same quarters
  • All trades in Z/ZP/ZY group securities will settle on Trade for Trade basis
  • Action based on SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024

Regulatory Changes

No new regulatory changes. This action implements existing penal provisions under SEBI Master Circular dated November 11, 2024 for non-compliance with SEBI LODR Regulations 2015.

Compliance Requirements

For GV Films Ltd:

  • Must comply with Regulation 17(1) - Composition of Board of Directors
  • Must comply with Regulation 18(1) - Composition of Audit Committee and other Committees
  • Deadline to rectify: January 06, 2026 (to avoid Z group transfer)

For Market Participants:

  • All trades in Z/ZP/ZY group scrips must be settled on Trade for Trade basis
  • No intraday trading or netting allowed for these securities

Important Dates

  • December 29, 2025: Notice issued
  • January 06, 2026: Last date for GV Films Ltd to comply and avoid Z group transfer
  • January 09, 2026: Effective date of transfer to Z group (if non-compliance continues)
  • Non-compliance period: June 2025 and September 2025 quarters

Impact Assessment

Trading Impact:

  • Transfer to Z group severely restricts trading liquidity as all trades become Trade for Trade (no intraday positions)
  • Increased settlement risk and reduced speculative activity
  • Likely to cause price volatility and reduced investor interest

Corporate Governance:

  • Indicates serious governance deficiencies in Board/Committee composition
  • Two consecutive quarters of non-compliance suggests systemic issues
  • Regulatory pressure increases significantly in Z group

Investor Impact:

  • Existing shareholders face reduced liquidity and potential difficulty in exiting positions
  • Higher transaction costs due to Trade for Trade settlement
  • Reputational damage may lead to further price decline

Market Sentiment:

  • Z group classification serves as warning to other listed entities about compliance importance
  • Demonstrates exchange’s enforcement of SEBI LODR requirements

Impact Justification

Transfer to Z group significantly restricts trading (trade-for-trade only), indicating serious corporate governance failures. High impact on shareholders and liquidity.