Explain the following: Classification of scrip traded on BSE.
CS Executive · Capital Markets & Securities Laws · PYQS · December 2020
Explain the following: Classification of scrip traded on BSE.
Answer & Explanation:
The scrips traded on BSE have been classified into various groups: For the guidance and benefits of the investors, BSE has classified the scrips in the Equity segment into A, B, F, G, T, Z groups on certain qualitative and quantitative parameters; The A Group 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. The B Group represents two scrips 'B1' which consists of scrips relatively liquid and with good track record. 'B2' which consists of scrips with comparatively low liquidity. The F group represents the fixed income securities. The G group represents trading in Government Securities by the retail investors. The T group represents scrips which are settled on a trade to trade basis as a surveillance measure. The Z group 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 the depositories for dematerialization of their securities.
Topics: Stock Exchanges
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