Description
NSE has identified Nagarjuna Fertilizers and Chemicals Limited as non-compliant with Board composition requirements for two consecutive quarters. Trading will be shifted to Z category effective April 10, 2026, unless compliance is achieved by April 7, 2026.
Summary
NSE has issued a circular identifying Nagarjuna Fertilizers and Chemicals Limited (NAGAFERT) as non-compliant with Regulation 17(1) (Composition of Board) of SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015 for two consecutive quarters (September 30, 2025 and December 31, 2025). Unless compliance is achieved by April 7, 2026, trading in NAGAFERT will be shifted to the Z Series (BZ category) effective April 10, 2026. Additionally, Omkar Speciality Chemicals Limited and Rajvir Industries Limited have been identified as non-compliant under Regulation 27(2) (Corporate Governance Report submission), though they are already trading in Z category.
Key Points
- Nagarjuna Fertilizers and Chemicals Limited (NAGAFERT) is non-compliant with Regulation 17(1) (Board composition) for Q2 and Q3 FY2026
- NAGAFERT trading will be moved to Z Series (BZ) from April 10, 2026 if non-compliance persists beyond April 7, 2026
- Omkar Speciality Chemicals Limited and Rajvir Industries Limited are non-compliant under Regulation 27(2) (Corporate Governance Report) for the same two quarters
- Omkar Speciality Chemicals and Rajvir Industries are already in Z category per earlier circulars (NSE/CML/54919 and NSE/CML/49924 respectively)
- All trades in Z category securities are settled on a Trade for Trade (T2T) basis
- Action is pursuant to SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026, last updated January 30, 2026
Regulatory Changes
No new regulatory framework is introduced. The circular enforces existing provisions under:
- Regulation 17(1) of SEBI LODR Regulations, 2015 — Composition of Board of Directors
- Regulation 27(2) of SEBI LODR Regulations, 2015 — Submission of Corporate Governance Report
- SEBI Master Circular (originally issued July 11, 2023, last updated January 30, 2026) governing non-compliance actions
Compliance Requirements
- NAGAFERT: Must comply with Regulation 17(1) (proper Board composition) on or before April 7, 2026 to avoid being shifted to Z category
- Omkar Speciality Chemicals Limited and Rajvir Industries Limited: Already in Z category; identified as additionally non-compliant under Regulation 27(2); no new immediate action required beyond existing Z category trading status
- All members of the Exchange are informed to note the T2T settlement applicable to Z category securities
Important Dates
| Date | Event |
|---|---|
| September 30, 2025 | First quarter of non-compliance for all listed companies |
| December 31, 2025 | Second consecutive quarter of non-compliance confirmed |
| March 30, 2026 | Circular issued by NSE |
| April 7, 2026 | Deadline for NAGAFERT to achieve compliance and avoid Z category shift |
| April 10, 2026 | Effective date for NAGAFERT’s transfer to Z Series (BZ) if non-compliance continues |
Impact Assessment
NAGAFERT (Nagarjuna Fertilizers and Chemicals Limited): If moved to Z category, trading will switch to Trade for Trade settlement, meaning no netting of positions is allowed and each trade must be settled individually. This typically reduces liquidity, increases transaction costs for investors, and signals regulatory concern, which can negatively impact the stock price. Retail and institutional investors may reconsider holdings.
Omkar Speciality Chemicals Limited & Rajvir Industries Limited: Already in Z category; the additional non-compliance identification under Regulation 27(2) does not change their current trading status but reinforces ongoing governance concerns.
Market-wide: This is a routine enforcement action. Impact is limited to the named securities. Investors holding NAGAFERT should monitor the company’s compliance announcements ahead of the April 7, 2026 deadline.
Impact Justification
Direct trading category shift to Z (trade-for-trade) affects liquidity and investor sentiment for the named securities; compliance deadline is imminent (April 7, 2026) with action effective April 10, 2026.