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Classification of securities into various group



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BSE has, for the guidance and benefit of the investors, classified the Securities in the Equity Segment into 'A', 'B', 'T' and 'Z' groups on certain qualitative and quantitative parameters.

Criteria for "A" and "B" Group Companies is available at http://www.bseindia.com/downloads1/Guidelines_Group_A_Companies.pdf

Company must have been listed for minimum period of 3 months.

Companies traded for minimum 98% of the trading days in last quarter shall be considered eligible.

Special hierarchy of rules is followed in listing top 300 companies in Group ‘A.

'A’ Group company which is not included in the final 300 companies but is a part of S&P BSE 500, will continue to be in the ‘A’ Group.

The "F" Group represents the Fixed Income Securities.

The "T" Group represents Securities which are settled on a trade-to-trade basis as a surveillance measure.

Trading in Government Securities by the retail investors is done under the "G" group.

The 'Z' group was introduced by BSE in July 1999 and includes companies which have failed to comply with its listing requirements and/or have failed to resolve investor complaints and/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.

'P' group shares are those that are in physical delivery mode or demat-optional mode. Applicable for companies that still trade with share certificates.

'M' group is SME segment shares. Lot site for this shares will be huge

'MT' is the T-group of SME segment. Surveillance measure for M segment shares

The A-group shares are undoubtedly the best companies of the market.

Let us have a closer look as to which companies will make it to the A-list.

A-group companies are precious and entry into it is not an easy task.

Lets see the ranking mechanism followed by BSE:

1) Last quarter average free float Market Capitalization of the comp any ( 5 0 %)

2) Last quarter average Turnover of the company (2 5 %)

3) Corporate Governance (10%) (Source of Information – Latest Annual Report Submitted by the company)

4) Compliance Monitoring (10%)

5) Responsible /Sustainable Investment (Source of Information – Latest Annual Report Submitted by the company and Company Website) (5%)

"EQ" Series

This is a NSE-specific series.

Represents Equity.

Intraday trasactions are permissible and normal trading is done in this category.

"BE" Series

This is a NSE-specific series.

Shares falling in the Trade to Trader or T Segment are traded ion this series and no intraday squaring is allowed.

This means trades can only be settle d only by accepting or giving the delivery of shares.

"BL" Series

This is a NSE-specific series.

This series is for facilitating block deals.

An order should have at least 5,00,000 (and more) shares.

This block deal window session is only available for 35 minutes (09:15 to 9:50 AM)

"BT" Series

This is a NSE-specific series.

This series provides an exit route to small investors having shares in the physical form with a cap of maximum 500 shares.

"GC" Series

This is a NSE-specific series.

Government Securities and Treasury Bills are traded under this category.

"IL" Series

This is a NSE-specific series.

Under this series-type only FIIs (Foreign Institutional Investors) can trade amongst themselves.

Permissible only in those securities where maximum permissible limit for FIIs is not breached.

"IQ" Series

This is a NSE-specific series.

To facilitate Qualified Foreign Investors (QIP) to trade in companies without the prior approval of the depositories where the caution limit (QIP holding exceeding 8% (presently) of the paid-up equity captial) has been reached.

Note on NSE series

Retail investors generally come across only NSE EQ and BE series.

Normal share trading is done under the NSE EQ series and intra-day squaring of the trade is possible. This means a trade can be settled without accepting or giving its delivery.

As under BE category no intra-day trade is allowed and the ‘delivery percentage’ is 100 %.

Classification of securities of companies under “XC”, “XD” and “XT” sub-segments

1. Traded on any nationwide stock exchange having an average daily turnover of the said Exchange greater than Rs. 500 crores in equity segment.

2. Security forming part of any of the indices such as S&P BSE 100, S&P BSE 200, S&P BSE 500 and S&P BSE All Cap indices.

3. No. of public shareholders more than 10,000.

4. Companies with minimum average pre-tax operating profit of Rs. 15 crores during the 3 preceding financial years

5. Securities with average daily trading value more than Rs. 5 lac during a 3 month period.

AND

Daily trading value of Rs. 3 lacs during a 3 month period.

AND

Traded on 80% of the trading days during a 3 month period.

AND

Avg. Market Cap during a 3 month period of more than Rs. 200 crores.

6. Securities with six monthly average (full) market capitalization of Rs. 1000 crores

AND

Number of public shareholders being more than 1000


Securities that do not fall within any of the above exclusions would be eligible for classification under “XC”, “XD” and “XT” sub-segments as under:

1) those securities that have a 6 monthly average (full) market cap of more than Rs. 100 crores but less than Rs. 1000 crores and have more than 1000 public shareholders are classified in "XC" sub-segment.

2) the balance securities are classified in "XD" sub-segment.

3) further, securities falling in ‘DT’ and ‘T’ groups at present that do not satisfy any of the above exclusions are classified under “XT” sub-segment.

Clarification of X and XT group companies

As a part of Exchange's role towards ensuring market integrity, BSE is continuously looking for further strengthening of the market regulation framework particularly in respect of securities of companies that are only listed/traded at BSE, considering their specific characteristics such as large number of companies, low to moderate market capitalization, lower contribution to overall trading turnover and relatively higher attention required to be devoted to these securities by the Exchange, from a regulatory due diligence and monitoring standpoint.

It is therefore decided to classify equity securities of companies that are only listed/traded at BSE and satisfy certain parameters into separate sub-segments called "X", and "XT". At the time of review any securities falling in Trade-for-Trade segment ('DT' or 'T' groups) are classified under "XT" sub-segment.

Notice No. 20171124-33 for Merger of 'XC' and 'XD' Groups to 'X' Group

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