Description

NSE continues trading of 19 companies in Z Category (BZ/SZ Series) due to non-compliance with annual report submission requirements for two consecutive years (FY2024 and FY2025).

Summary

NSE has issued a circular continuing the trading of 19 companies in Z Category (BZ/SZ Series) effective December 12, 2025. These companies have failed to comply with Regulation 34 of SEBI LODR Regulations 2015, specifically non-submission of Annual Reports for two consecutive financial years ending March 31, 2024 and March 31, 2025. All securities were already trading in Z Category pursuant to previous NSE circulars, and will continue to be settled on a Trade for Trade basis.

Key Points

  • 19 companies identified as non-compliant with Annual Report submission requirements under Regulation 34 of SEBI LODR 2015
  • Non-compliance period: Two consecutive years (FY 2023-24 and FY 2024-25)
  • All 19 companies already trading in Z Category per earlier NSE circulars
  • Trading continues in BZ/SZ Series with Trade for Trade settlement
  • Circular issued pursuant to SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024
  • No new transfers to Z Category; continuation of existing status

Affected Companies

The following 19 companies continue in Z Category:

  1. Ankit Metal & Power Limited (NSE/CML/64541)
  2. Arshiya Limited (NSE/CML/65756)
  3. BKM Industries Limited (NSE/CML/49576)
  4. Future Enterprises Limited (NSE/CML/55207)
  5. Future Lifestyle Fashions Limited (NSE/CML/56081)
  6. Gayatri Projects Limited (NSE/CML/58994)
  7. Golden Tobacco Limited (NSE/CML/54037)
  8. Housing Development and Infrastructure Limited (NSE/CML/43626)
  9. IL&FS Transportation Networks Limited (NSE/CML/40503)
  10. Lakshmi Precision Screws Limited (NSE/CML/38892)
  11. MEP Infrastructure Developers Limited (NSE/CML/64541)
  12. Morarjee Textiles Limited (NSE/CML/64541)
  13. Omkar Speciality Chemicals Limited (NSE/CML/54919)
  14. Ortel Communications Limited (NSE/CML/42146)
  15. Rajvir Industries Limited (NSE/CML/49924)
  16. Sanco Industries Limited (NSE/CML/55991)
  17. Setubandhan Infrastructure Limited (NSE/CML/57773)
  18. Shree Ram Proteins Limited (NSE/CML/65620)
  19. SKIL Infrastructure Limited (NSE/CML/62406)

Regulatory Changes

No new regulatory changes introduced. This circular continues the application of existing surveillance measures as per:

  • SEBI LODR Regulations 2015, Regulation 34 (Annual Report submission)
  • SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024
  • Previous NSE circulars that originally placed these securities in Z Category

Compliance Requirements

For Listed Companies:

  • Must submit Annual Reports as required under Regulation 34 of SEBI LODR 2015
  • Need to remedy non-compliance for FY 2023-24 and FY 2024-25 to exit Z Category
  • Must meet all listing compliance requirements to restore normal trading status

For Trading Members:

  • Must inform clients about Z Category trading restrictions
  • Execute trades only on Trade for Trade basis
  • Ensure settlement compliance as per NSE guidelines for Z Category securities
  • Monitor continuation status of these securities

For Investors:

  • Understand liquidity constraints in Z Category securities
  • Trades settled on compulsory delivery basis (no intraday, no carry forward)
  • Higher risk due to regulatory non-compliance of underlying companies

Important Dates

  • Circular Issue Date: December 01, 2025
  • Effective Date: December 12, 2025
  • Non-Compliance Period: March 31, 2024 and March 31, 2025 (two consecutive financial years)

Impact Assessment

Market Impact:

  • Continued restricted trading for 19 securities with limited liquidity
  • Trade for Trade settlement restricts speculative activity and intraday trading
  • Investor confidence remains low for these non-compliant entities

Investor Impact:

  • HIGH - Existing shareholders face continued illiquidity and settlement restrictions
  • Limited exit opportunities due to reduced trading interest
  • Compulsory delivery-based settlement increases holding risk
  • Signals ongoing governance and compliance issues at company level

Operational Impact:

  • Trading members must continue surveillance and client disclosure for these securities
  • Settlement processes remain on T+T basis without netting benefits
  • No change to existing operational procedures as companies already in Z Category

Compliance Signal:

  • Persistent non-compliance (two consecutive years) indicates serious governance concerns
  • Companies failing basic disclosure requirements pose elevated investment risk
  • Continuation in Z Category suggests no remedial action taken by these entities

Impact Justification

Affects 19 companies already in restrictive trading with continuation of trade-for-trade settlement due to persistent regulatory non-compliance. High impact for investors in these securities with limited liquidity and settlement restrictions.