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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 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)
What is “Group A” classification of BSE?
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.
At present there are 216 companies in the A group
What is “Group S” classification of BSE?
The Exchange has introduced a new segment named “BSE Indonext” With Effect from January 7, 2005. The “S” Group represents 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.
What is “Group Z” classification of BSE?
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.
What are Group B1 & B2 classification of BSE?
All companies not included in group A, S orZ 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.
What is Group T classification of BSE?
It consists of scrips which are traded on trade to trade basis.
What is Group TS classification of BSE?
Besides these equity groups there are two other groups i.e. Fixed Income Securities (Group F) and Government Securities (Group G)
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SOURCE : Article taken from http://finmanac.blogspot.com/
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