What is Group A, B1, B2, S, T, TS, & Z classification of BSE?
The Bombay Stock Exchange (BSE), India’s leading stock exchange, has classified Equity scripts 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).
It is the most tracked class of scripts consisting of about 200 scripts. Market capitalization is one key factor in deciding which scrip should be classified in Group A.
At present there are 216 companies in the A group.
“The Exchange has introduced a new segment named “BSE Indonext” w.e.f. January 7, 2005. The “S” Group represents scripts forming part of the “BSE-Indonext” segment. “S” group consists of scripts 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.”
“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.
“It consists of scripts which are traded on trade to trade basis.”
“The “TS” Group consists of scripts in the “BSE-Indonext” segments which are settled on a trade to trade basis as a surveillance measure.”
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
Article Taken from http://finmanac.blogspot.com/