Description

24 companies identified as non-compliant with financial results submission requirements will continue trading in Z Category (BZ/SZ Series) on trade-for-trade basis effective January 27, 2026.

Summary

NSE has notified that 24 companies will continue trading in Z Category (BZ/SZ Series) effective January 27, 2026, due to non-compliance with Regulation 33 of SEBI Listing Regulations. These companies failed to submit financial results for two consecutive quarters (June 30, 2025 and September 30, 2025; for SME companies March 31, 2025 and September 30, 2025). All securities were already in Z Category under previous circulars and will continue trade-for-trade settlement.

Key Points

  • 24 companies identified as non-compliant with financial results submission requirements under Regulation 33 of SEBI Listing Regulations
  • Non-compliance period: Two consecutive quarters (Q1 and Q2 FY2025-26 for regular companies; Q4 FY2024-25 and Q2 FY2025-26 for SME companies)
  • All affected securities already trading in Z Category pursuant to various previous NSE circulars
  • Continuation of Z Category classification effective from January 27, 2026
  • Trade-for-trade settlement basis mandatory for all transactions
  • Action taken pursuant to SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024

Regulatory Changes

No new regulatory changes introduced. This circular implements existing SEBI regulations regarding non-compliance with financial results submission requirements. The Z Category classification is a continuation of existing surveillance measures already applied to these securities under previous exchange circulars.

Compliance Requirements

For Listed Companies:

  • Companies must submit quarterly financial results as required under Regulation 33 of SEBI Listing Regulations
  • Failure to comply results in Z Category classification and trading restrictions

For Trading Members:

  • Must execute all trades in affected securities on trade-for-trade basis only
  • No intraday trading or netting of positions permitted
  • Full upfront margins and delivery obligations apply

For Investors:

  • All purchases and sales must result in actual delivery
  • No speculative or intraday trading allowed in these securities
  • Higher settlement obligations and restrictions on liquidity

Important Dates

  • January 13, 2026: Circular issued
  • January 27, 2026: Effective date for continuation of Z Category trading for all 24 companies
  • Non-compliance period reference: June 30, 2025 and September 30, 2025 quarters (March 31, 2025 and September 30, 2025 for SME companies)

Impact Assessment

Market Impact:

  • Severe liquidity constraints for 24 securities affecting investor ability to enter/exit positions
  • Trade-for-trade settlement eliminates intraday trading opportunities
  • Increased transaction costs and settlement obligations for market participants
  • Reduced institutional and retail investor interest due to trading restrictions

Investor Impact:

  • Existing shareholders face significant challenges in exiting positions
  • Mandatory delivery-based settlement increases capital requirements
  • Price discovery may be impaired due to reduced trading activity
  • Higher risk perception associated with Z Category securities

Operational Impact:

  • Brokers must ensure proper categorization and settlement procedures
  • Risk management systems need to account for trade-for-trade requirements
  • Compliance monitoring required for all transactions in affected securities

Companies Affected: AGS Transact Technologies, Ankit Metal & Power, Ansal Properties & Infrastructure, Arshiya, CMI Limited, Compuage Infocom, Educomp Solutions, Future Enterprises, Future Lifestyle Fashions, Gensol Engineering, Golden Tobacco, Housing Development and Infrastructure, IL&FS Transportation Networks, Lakshmi Precision Screws, MEP Infrastructure Developers, Morarjee Textiles, Ortel Communications, Perfect Infraengineers, Rajvir Industries, Reliance Home Finance, Setubandhan Infrastructure, Simbhaoli Sugars, SKIL Infrastructure, and Winsome Yarns.

Impact Justification

High severity action affecting 24 companies for failing to submit financial results for two consecutive quarters. Trading restrictions imposed through Z Category classification with trade-for-trade settlement, significantly impacting liquidity and investor access.