Description
BSE to transfer 3 scrips to 'Z' group effective January 27, 2026 due to non-compliance with quarterly financial results filing requirements for June 2025 and September 2025 quarters.
Summary
BSE has announced the transfer of 3 scrips to the ‘Z’ group effective January 27, 2026, due to non-compliance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for two consecutive quarters (June 2025 and September 2025). The affected companies can avoid this transfer by complying on or before January 21, 2026. Additionally, 39 companies already in ‘Z’/‘MT’ group remain non-compliant for the same periods.
Key Points
- 3 scrips will be transferred to ‘Z’ group effective January 27, 2026
- Non-compliance relates to Regulation 33 (quarterly financial results) for June 2025 and September 2025 quarters
- Companies have until January 21, 2026 to comply and avoid transfer
- All trades in ‘Z’/‘ZP’/‘ZY’/‘MT’ group will be settled on Trade for Trade basis
- 39 companies already in ‘Z’/‘MT’ group continue to be non-compliant
- Circular issued pursuant to SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024
Regulatory Changes
No new regulatory changes introduced. This circular implements existing penal provisions under SEBI Master Circular dated November 11, 2024 for non-compliance with SEBI LODR Regulations, 2015. The action follows the Standard Operating Procedure for suspension and revocation of trading of specified securities.
Compliance Requirements
For the 3 companies being transferred to Z group:
- File pending quarterly financial results for June 2025 and September 2025 quarters (Regulation 33 compliance)
- Deadline: January 21, 2026 to avoid Z group transfer
Companies to be transferred (if non-compliant by deadline):
- Konark Synthetic Ltd (Scrip Code: 514128)
- Shree Securities Ltd (Scrip Code: 538975)
- Sharanam Infraproject and Trading Ltd (Scrip Code: 539584)
Already non-compliant companies in Z/MT group: 39 companies listed continue to be non-compliant for the same quarters and remain in restricted trading categories.
Important Dates
- January 13, 2026: Notice date and circular issuance
- January 21, 2026: Last date for companies to comply and avoid Z group transfer
- January 27, 2026: Effective date for transfer of scrips to ‘Z’ group (if non-compliant)
- Non-compliance periods: June 2025 quarter and September 2025 quarter (for regular companies); March 2025 and September 2025 half-years (for SME companies)
Impact Assessment
Trading Impact:
- Scrips in Z group face severe liquidity restrictions with Trade for Trade settlement
- No intraday trading allowed; full upfront margin required
- Significant reduction in trading volumes expected
- Higher transaction costs and settlement risks for investors
Market Participants:
- Investors holding these scrips will face difficulty in exiting positions
- Reduced market interest and price discovery mechanism impaired
- Broker limitations on accepting orders for Z group securities
Company Impact:
- Reputational damage from Z group classification
- Reduced access to capital markets
- Potential further regulatory actions if non-compliance continues
- 39 companies already facing these restrictions continue to be impacted
Investor Protection:
- Z group classification serves as warning signal to investors about compliance issues
- Trade for Trade mechanism ensures delivery-based settlement reducing speculative activity
Impact Justification
Transfer to Z group significantly restricts trading liquidity with trade-for-trade settlement, impacting 3 companies with potential compliance deadline of January 21, 2026