Description

BSE to suspend trading in GV Films Ltd and Amit International Ltd from March 2, 2026 for non-compliance with SEBI LODR Regulations for two consecutive quarters (June and September 2025).

Summary

BSE has announced the suspension of trading in securities of GV Films Ltd (Scrip Code: 523277) and Amit International Ltd (Scrip Code: 531300) effective March 2, 2026, due to non-compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for two consecutive quarters (June 2025 and September 2025). The suspension can be avoided if companies comply by February 25, 2026. Promoter shareholdings will be frozen during the suspension period.

Key Points

  • Trading suspension effective March 2, 2026 for two companies
  • GV Films Ltd violated Regulation 17(1) - composition and role of Board of Directors
  • Amit International Ltd violated Regulation 18(1) - composition and role of Audit Committee
  • Non-compliance persisted for two consecutive quarters: June 2025 and September 2025
  • Entire promoter shareholding and all promoter demat account securities will be frozen during suspension
  • Suspension can be avoided if compliance achieved by February 25, 2026
  • Post-suspension, limited trading allowed on Trade for Trade basis in Z group only on first trading day of each week for six months
  • Revocation requires compliance with all prescribed procedures and fine payment

Regulatory Changes

This circular implements the penal actions framework prescribed under SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024 for non-compliance with SEBI LODR Regulations, 2015. The Standard Operating Procedure for suspension and revocation of trading applies to both companies.

Compliance Requirements

  • For Non-Compliant Companies: Must comply with all provisions of SEBI LODR Regulations 2015 to the Exchange’s satisfaction by February 25, 2026 to avoid suspension
  • For Revocation: Companies must comply with prescribed procedures, pay all applicable fines, and meet all extant norms for revocation
  • Specific Violations:
    • GV Films Ltd: Achieve compliance with Regulation 17(1) regarding Board composition and role
    • Amit International Ltd: Achieve compliance with Regulation 18(1) regarding Audit Committee composition and role
  • Market Participants: Note the suspension timeline and limited trading arrangements

Important Dates

  • January 28, 2026: Notice issued
  • February 25, 2026: Deadline for companies to comply and avoid suspension
  • March 2, 2026: Trading suspension effective date (if non-compliance continues)
  • 15 days post-suspension: Trade for Trade basis trading begins in Z group (first trading day of every week for six months)

Impact Assessment

Market Impact: High - Complete trading suspension eliminates liquidity and price discovery for affected securities. Investors holding these stocks will face severe restrictions on exit options.

Investor Impact: Existing shareholders will be unable to trade securities during full suspension period. Limited weekly trading windows (Trade for Trade basis) provide minimal liquidity after 15 days.

Promoter Impact: Critical - Complete freeze of promoter shareholdings and all securities in promoter demat accounts prevents any transactions or pledging activities during suspension.

Compliance Precedent: Reinforces SEBI’s strict enforcement of governance requirements (Board and Audit Committee composition), with escalating penalties for sustained non-compliance across multiple quarters.

Impact Justification

Trading suspension and promoter shareholding freeze for non-compliance with mandatory disclosure regulations affects investor access and company liquidity