Description
BSE announces suspension of trading in five companies effective March 13, 2026, for failure to comply with Regulation 33 requirements for two consecutive quarters (June 2025 and September 2025).
Summary
BSE has issued notice for suspension of trading in securities of five companies effective March 13, 2026, due to non-compliance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The companies failed to submit financial results for two consecutive quarters (June 2025 and September 2025). During suspension, entire promoter shareholding will be frozen, and post-suspension trading will be restricted to Trade for Trade basis in Z group on first trading day of each week for six months.
Key Points
- Five companies face trading suspension from March 13, 2026
- Non-compliance relates to Regulation 33 (quarterly financial results) for June 2025 and September 2025 quarters
- Complete freeze on promoter shareholding and all securities in promoter demat accounts during suspension
- Companies can avoid suspension by complying before March 10, 2026
- Post-suspension trading allowed only on Trade for Trade basis in Z group, once per week for six months
- Suspension based on SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024
Affected Companies
- Konark Synthetic Ltd (Scrip Code: 514128)
- Inditrade Capital Ltd (Scrip Code: 532745)
- Shree Securities Ltd (Scrip Code: 538975)
- Sharanam Infraproject and Trading Ltd (Scrip Code: 539584)
- Benara Bearings and Pistons Ltd (Scrip Code: 541178) - Non-compliant for half year ended March 2025 & September 2025
Regulatory Changes
This action implements the penal framework prescribed under SEBI Master Circular dated November 11, 2024, which establishes Standard Operating Procedure for suspension and revocation of trading for non-compliance with SEBI LODR Regulations.
Compliance Requirements
To Avoid Suspension (by March 10, 2026):
- Submit pending quarterly financial results for June 2025 and September 2025
- Comply with all provisions of SEBI LODR Regulations to Exchange’s satisfaction
For Revocation After Suspension:
- Comply with all pending requirements
- Pay applicable fines
- Follow prescribed revocation procedure and extant norms
- Complete compliance formalities to Exchange’s satisfaction
Trading Member Requirements:
- Note suspension effective date and restricted trading arrangements
- Inform clients holding securities of affected companies
Important Dates
- February 10, 2026: Circular issued
- March 10, 2026: Last date for companies to comply and avoid suspension
- March 13, 2026: Trading suspension becomes effective
- 15 days after March 13, 2026: Trade for Trade basis trading begins (Z group, first trading day of week only)
- Six months from suspension: Duration of weekly Trade for Trade arrangement
Impact Assessment
Market Impact:
- High impact on existing shareholders unable to trade during suspension
- Severe liquidity constraints with Z group Trade for Trade restrictions
- Price discovery severely impaired with weekly trading only
- Potential panic selling once Trade for Trade window opens
Investor Impact:
- Complete lock-in for promoters with frozen demat accounts
- Exit barriers for retail investors during suspension period
- Increased transaction costs in Z group (100% upfront margins)
- Reputational damage affecting investor confidence
Company Impact:
- Loss of market access for capital raising
- Compliance costs including fines and penalties
- Complex revocation process with stringent requirements
- Damage to corporate reputation and stakeholder relationships
Operational Impact:
- Enhanced surveillance on compliance by market participants
- Precedent for strict enforcement of financial disclosure norms
- Emphasis on timely quarterly result submissions
Impact Justification
Trading suspension directly impacts investors and promoters with complete shareholding freeze. Companies face severe trading restrictions and must meet stringent compliance requirements for revocation.