Description

BSE to transfer GV Films Ltd (Scrip Code: 523277) to 'Z' group effective January 09, 2026, due to non-compliance with Regulations 17(1)/18(1) for two consecutive quarters (June 2025 & September 2025).

Summary

BSE has issued notice for shifting GV Films Ltd (Scrip Code: 523277) to the ‘Z’ group effective January 09, 2026, due to non-compliance with SEBI LODR Regulations 17(1)/18(1) for two consecutive quarters (June 2025 and September 2025). The transfer is based on SEBI Master Circular dated November 11, 2024, regarding penal actions for non-compliance. Additionally, Amit International Ltd (Scrip Code: 531300) is noted as already in Z group and remains non-compliant for Regulation 18(1) for the same quarters.

Key Points

  • GV Films Ltd to be transferred to ‘Z’ group from January 09, 2026
  • Non-compliance relates to SEBI LODR Regulations 17(1)/18(1) covering board composition and committee requirements
  • Non-compliance period: Two consecutive quarters (June 2025 & September 2025)
  • Company can avoid transfer if compliance achieved by January 06, 2026
  • All trades in Z/ZP/ZY group securities will be settled on Trade for Trade basis
  • Amit International Ltd already in Z group with ongoing Regulation 18(1) non-compliance

Regulatory Changes

This action implements the penal framework under SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, which prescribes standardized consequences for non-compliance with SEBI LODR Regulations 2015. The circular establishes the Standard Operating Procedure for suspension and revocation of trading of specified securities.

Compliance Requirements

For GV Films Ltd:

  • Must achieve compliance with Regulations 17(1)/18(1) on or before January 06, 2026 to avoid Z group transfer
  • Regulation 17(1): Requires specified board composition including independent directors
  • Regulation 18(1): Mandates formation of audit committee with specified composition

For Market Participants:

  • Must be aware that trading in these scrips will be on Trade for Trade (T4T) basis with no intraday squaring off allowed
  • Enhanced due diligence required when dealing with Z group securities

For Amit International Ltd:

  • Already in Z group; must rectify Regulation 18(1) non-compliance to exit Z category

Important Dates

  • December 29, 2025: Notice date
  • January 06, 2026: Last date for GV Films Ltd to achieve compliance and avoid Z group transfer
  • January 09, 2026: Effective date of transfer to Z group if compliance not achieved
  • Non-compliance period: June 2025 and September 2025 quarters

Impact Assessment

Market Impact:

  • Severe liquidity constraints for affected securities due to Trade for Trade settlement
  • No intraday trading permitted, reducing market participation
  • Negative sentiment signal to investors regarding governance and compliance standards

Investor Impact:

  • Higher risk profile for securities in Z group
  • Mandatory delivery-based settlement increases capital requirements
  • Potential price volatility during transition period

Company Impact:

  • Reputational damage from regulatory classification
  • Reduced investor interest and potential share price impact
  • Difficulty in raising capital while in Z group
  • Added compliance pressure to rectify governance deficiencies

Operational Impact:

  • Brokers must modify trading systems to enforce T4T settlement
  • Enhanced monitoring and surveillance by exchange
  • Investors unable to conduct intraday trading strategies

Impact Justification

Transfer to Z group significantly restricts trading (trade-for-trade basis only) and signals serious regulatory non-compliance, impacting investor sentiment and liquidity for affected securities.