Description

NSE shifts trading of 4 companies to Z Category effective December 26, 2025 for non-compliance with shareholding pattern submission requirements for two consecutive quarters (June 30 and September 30, 2025).

Summary

NSE has identified 4 companies as non-compliant with Regulation 31 (Submission of Shareholding Pattern) of SEBI LODR Regulations for two consecutive quarters (Q1 FY2025-26 and Q2 FY2025-26). Trading in these securities will be shifted to ‘Z’ Category (BZ Series) effective December 26, 2025, unless companies comply by December 22, 2025. Additionally, 18 companies already trading in Z Category have been identified for the same non-compliance. The circular is issued pursuant to SEBI Master Circular dated November 11, 2024.

Key Points

  • 4 companies to be moved to Z Category (BZ Series) for non-compliance with Regulation 31
  • Non-compliance period: June 30, 2025 and September 30, 2025 (two consecutive quarters)
  • Companies have grace period until December 22, 2025 to comply and avoid Z Category transfer
  • 18 additional companies already in Z Category also identified for same non-compliance
  • All trades in Z Category settle on Trade-for-Trade (T4T) basis with no intraday trading
  • Circular reference: NSE/CML/71805, Circular No. 2437/2025

Regulatory Changes

No new regulatory changes introduced. This circular enforces existing provisions under:

  • SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Regulation 31
  • SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024

The action taken is a penalty mechanism for persistent non-compliance with shareholding pattern submission requirements.

Compliance Requirements

For the 4 Companies Being Shifted to Z Category:

  1. Debock Industries Limited (DIL)
  2. Future Consumer Limited (FCONSUMER)
  3. Rajesh Exports Limited (RAJESHEXPO)
  4. Viji Finance Limited (VIJIFIN)

Required Action: Submit shareholding pattern for June 30, 2025 and September 30, 2025 quarters by December 22, 2025 to avoid Z Category classification.

For Trading Members:

  • Prepare for Trade-for-Trade settlement in these securities from December 26, 2025
  • Inform clients about liquidity restrictions and settlement changes
  • No intraday trading permitted in Z Category securities

Companies Already in Z Category (18 companies): Continue to remain in Z Category for existing non-compliances as per previous circulars.

Important Dates

  • December 15, 2025: Circular issued
  • December 22, 2025: Last date for companies to comply with Regulation 31 to avoid Z Category transfer
  • December 26, 2025: Effective date for shifting securities to Z Category (BZ Series)
  • Non-compliance quarters: June 30, 2025 and September 30, 2025

Impact Assessment

Market Impact:

  • High liquidity impact: Z Category securities trade only on Trade-for-Trade basis, eliminating intraday trading and significantly reducing market liquidity
  • Price discovery affected: T4T settlement restricts speculative trading, potentially leading to wider bid-ask spreads
  • Investor sentiment: Negative perception due to regulatory non-compliance signal

Investor Impact:

  • Existing shareholders face reduced liquidity and difficulty in exiting positions
  • No margin trading or intraday positions allowed
  • Higher transaction costs due to full upfront payment requirements
  • Settlement risk increases

Company Impact:

  • Reputational damage from regulatory non-compliance
  • Reduced market capitalization potential due to liquidity constraints
  • Difficulty in raising capital through equity markets
  • Potential delisting risk if non-compliance persists

Operational Impact:

  • Brokers must implement T4T settlement systems for affected securities
  • Risk management systems need recalibration
  • Client communication and education requirements increase

Systemic Observations:

  • 22 total companies affected (4 new + 18 already in Z Category)
  • Future Group entities prominently featured (Future Consumer, Future Enterprises, Future Lifestyle Fashions)
  • Pattern of chronic non-compliance in certain stressed companies
  • Reinforces SEBI’s strict enforcement of disclosure norms

Impact Justification

Movement to Z Category severely restricts trading liquidity as all trades settle on Trade-for-Trade basis with no intraday trading allowed. This affects 4 companies immediately and highlights 18 others already in Z Category for similar violations.