Description

Three companies to continue trading in Z Category due to non-compliance with Corporate Governance Report submission requirements for two consecutive quarters.

Summary

NSE has identified three companies that remain non-compliant with Regulation 27(2) of SEBI LODR Regulations regarding submission of Corporate Governance Reports for two consecutive quarters (June 30, 2025 and September 30, 2025). These companies are eligible for transfer to Z Category (BZ Series) from January 09, 2026, but are already trading in Z Category pursuant to earlier exchange circulars. Trading will continue on a Trade for Trade basis.

Key Points

  • Three companies identified for non-compliance with Corporate Governance Report submission
  • Non-compliance period: Two consecutive quarters (June 30, 2025 and September 30, 2025)
  • Companies are already trading in Z Category due to earlier circulars
  • Trade for Trade settlement basis continues
  • Effective date for Z Category eligibility: January 09, 2026

Regulatory Changes

No new regulatory changes. This circular is issued pursuant to SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024 (Master Circular), which replaced SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/2023/120 dated July 11, 2023.

Compliance Requirements

Non-Compliant Companies:

  1. Debock Industries Limited - Already in Z Category per NSE/CML/71805
  2. Shree Ram Proteins Limited - Already in Z Category per NSE/CML/65620
  3. Rajvir Industries Limited - Already in Z Category per NSE/CML/49924

Violation: Non-submission of Corporate Governance Report as required under Regulation 27(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for Q1 FY2025-26 (June 30, 2025) and Q2 FY2025-26 (September 30, 2025).

Important Dates

  • June 30, 2025: End of first quarter of non-compliance
  • September 30, 2025: End of second consecutive quarter of non-compliance
  • December 29, 2025: Circular issued
  • January 09, 2026: Effective date for Z Category eligibility (continuation)

Impact Assessment

Market Impact: Limited, as all three companies are already trading in Z Category under earlier exchange circulars. No new restrictions are being imposed.

Trading Impact: Securities will continue to be settled on Trade for Trade (T4T) basis in the BZ Series, meaning no intraday squaring off is permitted and each trade must result in delivery.

Investor Impact: Investors in these securities face continued liquidity constraints due to T4T settlement requirements. Heightened caution advised due to ongoing corporate governance non-compliance.

Compliance Impact: Serves as a reminder to listed companies about the importance of timely submission of Corporate Governance Reports to avoid restrictive trading categories.

Impact Justification

Affects three companies already in Z Category; continuation rather than new restriction; limited to companies already facing trade-for-trade settlement