The Bombay Stock Exchange (BSE), India's leading stock exchange, has classified Equity scrips into categories A, B1, B2, S, T, TS, & Z to provide a guidance to the investors. The classification is on the basis of several factors like market capitalization, trading volumes and numbers, track records, profits, dividends, shareholding patterns, and some qualitative aspects.
As on February 2008 following criterion are used for classifying stocks into various categories by the Bombay Stock Exchange(BSE).
Group A:
It is the most tracked class of scrips consisting of about 200 scrips. Market capitalization is one key factor in deciding which scrip should be classified in Group A.
According to BSE circular dated February 5, 2008 the criterion is:
At present there are 216 companies in the A group.
We will look into Group B1 & B2 later.
Group T:
"It consists of scrips which are traded on trade to trade basis."
Group S:
"The Exchange has introduced a new segment named “BSE Indonext” w.e.f. January 7, 2005. The “S” Group represent scrips forming part of the “ BSE-Indonext” segment . “S” group consists of scrips from “B1” & “B2” group on BSE and companies exclusively listed on regional stock exchanges having capital of 3 crores to 30 crores. All trades in this segment are done through BOLT system under S group."
Group TS:
"The “TS” Group consist of scrips in the “ BSE-Indonext” segment which are settled on a trade to trade basis as a surveillance measure."
Group Z:
"The 'Z' group was introduced by the Exchange in July 1999 and includes the companies which have failed to comply with the listing requirements of the Exchange and/or have failed to resolve investor complaints or have not made the required arrangements with both the Depositories, viz., Central Depository Services (I) Ltd. (CDSL) and National Securities Depository Ltd. (NSDL) for dematerialization of their securities."
Group B1 & B2:
All companies not included in group 'A', 'S' or 'Z' are clubbed under this category. B1 is ranked higher than B2.
B1 and B2 groups will be merged as a single Group B effective from March 2008.
Besides these equity groups there are two other groups i.e. Fixed Income Securities (Group F) and Government Securities (Group G).
For more details please visit the source: http://www.bseindia.com/about/tradnset.asp
As on February 2008 following criterion are used for classifying stocks into various categories by the Bombay Stock Exchange(BSE).
Group A:
It is the most tracked class of scrips consisting of about 200 scrips. Market capitalization is one key factor in deciding which scrip should be classified in Group A.
According to BSE circular dated February 5, 2008 the criterion is:
1. Company must have been listed for minimum period of 3 months.
Exceptions:
* The Company can be directly listed in group 'A' provided the market capitalisation of a company being listed, based on its issue price, is higher than the average market capitalisation of 100th company in the existing group 'A' as per the ranking based on preceding 3 months data.
* Any company permitted to be traded in F&O segment from date of its listing shall be directly listed in group 'A'.
* Companies listed subsequent to any corporate action involving merger/ demerger/ capital restructuring etc.
2. Companies traded for minimum 98% of the trading days in past 3 months shall be considered eligible.
3. Companies with minimum non-promoter holding of 10% as per the shareholding pattern of most recent quarter shall be considered eligible. The criteria of minimum 10% non-promoter holding shall not be applicable to public sector undertakings (PSUs).
4. The weightage of 75% and 25% shall be given to ranking on three monthly average market capitalisation and traded turnover respectively to arrive at the final ranks.
5. The list derived, based on final rank shall be screened for compliance and investigation. Based on this screening, the list of top 200 companies shall constitute group 'A'.
6. The group re-classification shall be reviewed twice in a year i.e. February and August.
7. On inclusion of any new Company in group 'A' based on criteria 1(a) or 1(b) detailed above, the last company in the existing group 'A', based on its final rank calculated on data preceding three months shall be excluded.
At present there are 216 companies in the A group.
We will look into Group B1 & B2 later.
Group T:
"It consists of scrips which are traded on trade to trade basis."
Group S:
"The Exchange has introduced a new segment named “BSE Indonext” w.e.f. January 7, 2005. The “S” Group represent scrips forming part of the “ BSE-Indonext” segment . “S” group consists of scrips from “B1” & “B2” group on BSE and companies exclusively listed on regional stock exchanges having capital of 3 crores to 30 crores. All trades in this segment are done through BOLT system under S group."
Group TS:
"The “TS” Group consist of scrips in the “ BSE-Indonext” segment which are settled on a trade to trade basis as a surveillance measure."
Group Z:
"The 'Z' group was introduced by the Exchange in July 1999 and includes the companies which have failed to comply with the listing requirements of the Exchange and/or have failed to resolve investor complaints or have not made the required arrangements with both the Depositories, viz., Central Depository Services (I) Ltd. (CDSL) and National Securities Depository Ltd. (NSDL) for dematerialization of their securities."
Group B1 & B2:
All companies not included in group 'A', 'S' or 'Z' are clubbed under this category. B1 is ranked higher than B2.
B1 and B2 groups will be merged as a single Group B effective from March 2008.
Besides these equity groups there are two other groups i.e. Fixed Income Securities (Group F) and Government Securities (Group G).
For more details please visit the source: http://www.bseindia.com/about/tradnset.asp
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1 comment:
This posting is really informative. Thanks
Mallikarjun
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