On the Stock Exchanges in India there are thousands of listed companies. Some companies are very large and some companies have small market capitalization. Therefore, the risk involved in investing in these companies varies accordingly. To help Investors in making well-informed decision both the exchanges have divided the Securities in different categories.
The scrips traded on the NSE have been divided by the exchange into normal and trade to trade segments whereas in BSE the scrips traded have been classified by the Exchange into A, B1, B2, G, T, F, TS and Z groups
Segments of Scrips traded on BSE
The ‘A’ group contains the list of the most popular stocks. Stocks that are actively traded.
- •The ‘Z’ Group consists of Equity stocks which are either blacklisted for not following Exchange rules and regulations or has pending complaints from investors or have not made arrangements for dematerialization of their shares.
- This is a temporary measure for companies till they make arrangements for dematerialization of their securities.
- The ‘T’ Group consists of stocks that form part of the Trade to trade segment.
- Trade for trade segment is a segment in which no intraday trading is allowed. All trades result in delivery.
- ‘A’, ‘B1’ and ‘B2’ group securities which have put by the exchanges in the trade-to-trade segment as surveillance measures and trades which are settled in without netting are included in this group ‘T’.
The ‘B’ category includes stocks which don’t form part of any of the above Equity groups.
- BSE also provides a facility to the market participants of online trading in ‘C’ group which covers the odd lot securities (i.e. less than the market lot) in A,B1, B2, T,S, TS, and Z groups and Rights renunciations in all the groups of scripts in the equity segment.
- The facility of trading in odd lot structures not only offers an exit route to investors to dispose of their odd lots of securities but also provides
theman opportunity to consolidate their securities into market lots.
- The ‘C’ group facility at BSE can also be used by investors for selling up to 500 shares in physical
form whichis called as an Exit Route Scheme.
- Additionally, BSE also has the ‘F’ group which denotes the Debt market segment.
- Fixed Income Securities like bonds and debentures issued by the listed companies or institutions trade under this group.
Group ‘M’ and ‘MT’
‘M/MT’ group consist of stocks forming part of BSE’s SME (Small & Medium enterprise)
- ‘S’ group which is ‘BSE indo-next segment’ contains the share of companies listed on Regional Stock Exchanges having capital of Rs. 3 Crores to Rs. 30 Crores and of those companies already listed on BSE in B1 and B2 groups are allowed to be traded.
- It gives exit routes to Investors who traded in RSE and companies a chance to mobilize fresh capital from
‘TS’ group at BSE consists of scrips in the BSE-indonext segment, which are settled on a trade-to-trade basis as a surveillance measure.
‘G’ group consists of Government securities available for retail investors. Government securities are available on both NSE and BSE.
‘I’ group consists of Interest rate underlying securities.
‘E’ group consisting of ETF’s (Exchange Traded Funds)
What are ‘Permitted Securities’?
- • Apart from these segments to facilitate the market participants to trade in securities of the companies which are actively traded at other Regional Stock Exchanges but are not listed on NSE or BSE, both the exchanges had permitted trading in securities of companies listed on other Stock Exchanges as ‘Permitted Securities’
- It is subject to the companies meeting certain norms specified by the Exchanges in this regard.
- This segment has been discontinued from the NSE but still exists on the BSE.