Continuation of Trading in Securities in Z Category - 18 Companies Non-Compliant with Shareholding Pattern Submission

Description

NSE identifies 18 companies non-compliant with Regulation 31 (Shareholding Pattern submission) for two consecutive quarters (Sep 2025 and Dec 2025). Their securities continue trading in Z Category from March 27, 2026, on Trade for Trade basis.

Summary

NSE has identified 18 companies as non-compliant with Regulation 31 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates submission of Shareholding Pattern. These companies failed to comply for two consecutive quarters ending September 30, 2025 and December 31, 2025. While they would ordinarily be transferred to Z Category (BZ/SZ Series) effective March 27, 2026, all 18 are already trading in Z Category under prior Exchange circulars. Their Trade for Trade settlement continues.

Key Points

• 18 companies identified as non-compliant with Regulation 31 (Shareholding Pattern submission) for Q2 and Q3 FY2026 (Sep 30, 2025 and Dec 31, 2025)
• Non-compliant companies would be eligible for transfer to Z Category (BZ/SZ Series) from March 27, 2026
• All 18 companies are already in Z Category under earlier NSE circulars — no change in category status
• Trades in all listed securities will continue to be settled on Trade for Trade basis
• Action is pursuant to SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 (originally July 11, 2023, last updated January 30, 2026)

Regulatory Changes

No new regulatory changes are introduced. This circular reaffirms the application of SEBI’s Master Circular on Z Category trading for companies failing to submit shareholding patterns under Regulation 31 of SEBI LODR Regulations, 2015. The continued Z Category status and Trade for Trade settlement framework remain in effect.

Compliance Requirements

• The 18 listed companies must comply with Regulation 31 of SEBI LODR Regulations, 2015 by submitting their Shareholding Pattern on time to exit the Z Category
• Exchange members are informed to note that these securities remain in Z Category (BZ/SZ Series) with Trade for Trade settlement
• No additional compliance action is required from exchange members beyond awareness of the continued Z Category status

Important Dates

• Non-compliance period: September 30, 2025 and December 31, 2025 (two consecutive quarters)
• Effective date for Z Category transfer (if not already in Z): March 27, 2026
• SEBI Master Circular last updated: January 30, 2026
• Circular date: March 16, 2026

Impact Assessment

All 18 companies are already restricted to Z Category trading with Trade for Trade settlement, meaning no additional market impact arises from this circular beyond confirmation of existing status. However, the continued Z Category designation has significant implications:

• Liquidity restriction: Trade for Trade settlement prevents speculative or intraday trading; each trade must result in delivery, reducing trading volumes
• Investor risk: Z Category signals regulatory non-compliance, often deterring institutional and retail investors
• Notable companies affected: Gensol Engineering (GENSOL), Reliance Home Finance (RHFL), Future Enterprises (FEL, FELDVR), Future Lifestyle Fashions (FLFL), and Housing Development and Infrastructure (HDIL) are among the more prominent names
• Path to resolution: Affected companies must submit overdue shareholding pattern filings and achieve compliance to be considered for re-categorization

Impact Justification

Affects 18 listed companies including notable names like Gensol Engineering, Reliance Home Finance, Future Enterprises, and HDIL. Continued Z-category trading with Trade for Trade settlement significantly restricts liquidity and investor participation, making this high importance for holders of these securities.