Suspension of Trading in Securities for Non-Compliance with SEBI LODR Regulations

Description

BSE announces suspension of trading for five companies effective February 12, 2026 due to non-compliance with Regulation 31 (shareholding pattern disclosure) for June 2025 and September 2025 quarters.

Summary

BSE has issued a notice regarding the suspension of trading in securities of five companies effective February 12, 2026, 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). The affected companies are Future Consumer Ltd, IND Renewable Energy Ltd, Master Chemicals Ltd, Rajesh Exports Ltd, and Vardhman Concrete Ltd. The suspension will be accompanied by freezing of entire promoter shareholdings during the suspension period.

Key Points

• Five companies face trading suspension from February 12, 2026 for non-compliance with Regulation 31 (shareholding pattern disclosure)
• Non-compliance period covers two consecutive quarters: June 2025 and September 2025
• Entire promoter shareholding in non-compliant entities will be frozen during suspension period
• All securities held in promoter demat accounts will remain frozen
• Companies can avoid suspension by complying and paying fines by February 9, 2026
• Post-suspension, trading will be allowed on Trade for Trade basis in Z group only on first trading day of each week for six months
• This action is pursuant to SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024

Regulatory Changes

This circular implements the Standard Operating Procedure for suspension and revocation of trading of specified securities as per SEBI’s Master Circular on penal actions for non-compliance with SEBI LODR Regulations, 2015. The regulatory framework prescribes automatic suspension for failure to submit shareholding pattern for two consecutive quarters.

Compliance Requirements

For Affected Companies:

• Must comply with all provisions of SEBI LODR Regulations, 2015 to the satisfaction of BSE
• Must pay applicable fines for non-compliance
• Must follow prescribed procedure for revocation of suspension post-compliance
• Must submit outstanding shareholding pattern filings for June 2025 and September 2025 quarters

For Trading Members:

• Note the trading suspension effective date and affected securities
• Be aware of promoter shareholding freeze provisions
• Understand Trade for Trade framework applicable 15 days post-suspension
• Direct clarifications to bse.soplodr@bseindia.com

Important Dates

• January 12, 2026: Circular notice date
• February 9, 2026: Last date for companies to comply and avoid suspension
• February 12, 2026: Trading suspension becomes effective
• 15 days after February 12, 2026: Trade for Trade basis trading begins (first trading day of every week for six months)

Impact Assessment

Market Impact:

• Complete halt in trading of five securities affects investor liquidity
• Promoter shareholding freeze prevents any divestment or pledging activities
• Trade for Trade mechanism post-15 days significantly restricts trading frequency and volume
• Z group classification carries additional risk warnings for investors

Investor Impact:

• Existing shareholders face immediate liquidity constraints
• No ability to exit positions during suspension period except limited T4T windows
• Increased risk exposure due to inability to manage portfolio positions
• Potential price discovery issues when trading resumes in restricted format

Company Impact:

• Severe reputational damage from suspension
• Loss of trading platform affects market capitalization and stakeholder confidence
• Additional financial burden from fines and compliance costs
• Promoters face complete freeze on their holdings until compliance is achieved

Affected Companies Details

Impact Justification

Complete trading suspension affects five listed companies and their promoter shareholdings, with significant liquidity implications for investors. Companies have until February 9, 2026 to avoid suspension.