Eternal Ltd. Closes Trading Window for FY26 Results

Eternal Limited, formerly Zomato, will close its trading window for company securities starting March 21, 2026. The window will reopen 48 hours after the board declares the company's audited financial results for the fiscal year ending March 31, 2026.

What Happened

Eternal Limited announced that its trading window for dealing in the company's securities will be closed from March 21, 2026. This closure follows SEBI's Prohibition of Insider Trading Regulations, 2015, and applies to Designated Persons and their immediate relatives. The trading window is set to reopen 48 hours after the company's audited financial results for the fiscal year ending March 31, 2026, are officially declared. Additionally, a functionality to freeze the Permanent Account Number (PAN) of Designated Persons and their immediate relatives will be available from April 1, 2026, on the designated depository portal, as per recent SEBI directives.

Why This Matters

This measure is a key step to maintain market integrity and prevent insider trading. By restricting trading before the public release of financial information, SEBI regulations help ensure a level playing field for all investors as the company approaches its year-end financial reporting.

Background on Trading Windows

Eternal Limited, formerly Zomato, is an Indian multinational technology company operating in food delivery, quick commerce, and e-commerce. SEBI's Prohibition of Insider Trading Regulations, 2015, require listed companies to establish trading windows. These are periods when insiders, such as directors and key employees, are prohibited from trading the company's stock to prevent them from profiting from unpublished price-sensitive information. Zomato has a history of implementing these closures, for example, its window for FY25 results was closed in March 2025. Recent regulatory updates, effective from April 2025, have expanded these restrictions to include immediate relatives of Designated Persons, with PAN freezing mechanisms being implemented from dates like April 1st.

What This Means for Insiders and Investors

Designated Persons and their immediate relatives are prohibited from trading Eternal Limited's securities during the closure. This ensures no individual has an unfair advantage from early access to financial results. The PAN freezing functionality starting April 1, 2026, will further strengthen compliance. For external investors, this indicates that financial results are forthcoming, often leading to increased attention on the company's performance.

Potential Risks

The primary risk is a breach of the trading window policy by any Designated Person or their immediate relatives, which could lead to regulatory action by SEBI. Non-compliance with SEBI's insider trading norms can result in significant penalties and reputational damage.

Peer Practices

Closing trading windows before financial results announcements is a standard regulatory requirement for all listed companies in India. Peers like Motilal Oswal Financial Services, Life Insurance Corporation (LIC), and Chennai Petroleum Corporation Limited also announce similar trading window closures around their respective financial result declaration periods to comply with SEBI regulations. This practice reflects a consistent approach to market integrity across the Indian stock market.

What to Watch Next

• The announcement of the board meeting date, which will be convened to approve the audited financial results for FY26.
• The actual declaration of the audited financial results for the fiscal year ending March 31, 2026.
• The subsequent reopening of the trading window 48 hours after the results are declared.
• Any commentary or guidance from the company's management regarding the FY26 performance during investor calls.