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Introduction to ‘BSE Groups’
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The stocks that are listed on Bombay Stock Exchange (BSE) have been classified into various groups depending upon what they represent. Each series/group represents a different category of stocks that distinguishes them from each other. For the benefit of the investors, the exchange has basically grouped the stocks on certain qualitative and quantitative parameters such as liquidity, volatility, etc. Broadly, the securities have been classified into A, B, T and Z groups. Let us understand these one by one:

  1. Group A consists of the stocks that are most popular and actively traded.
  2. Group T consists of stocks which are settled on a trade-to-trade basis as a surveillance measure; no intra-day trading is allowed for shares falling under this segment, as each trade results in delivery on T+2 basis.
  3. Group Zenotes companies which have failed to comply with the exchange's listing requirements and/or have failed to resolve investor complaints and/or have not made the required arrangements with both the depositories viz. CDSL and NSDL for dematerialization of their securities. This group was introduced in July, 1999.
  4. Group B consists of those securities which don’t fall in any of the above three categories (A,T,Z).

Apart from the above main groups, there are other groups as follows:

        5. Group F represents fixed income securities (debt market segment).

        6. Group G represents government securities traded by retail investors.

7. BSE groups XC, XD, XT, X: Further, some securities have been classified exclusively on sub-segments as X and XT. XT includes all the stocks which are exclusively listed on BSE and settled on the trade-to-trade basis (as explained above). Rest stocks exclusively listed on BSE fall under the sub-segment X. Previously, there were XC and XD groups which were merged to group X on 24th Nov, 2017.

8. Group M/MT consists of stocks forming part of BSE's SME (Small & Medium enterprise).

         9. Group I consists of Interest rate underlying.

        10. Group E consists of ETFs (Exchange Traded Funds).

11. Group IF and IT to enable trading in the units of Infrastructure Investment Trust (InvITs). Group 'IF' is for normal rolling settlement and 'IT' is for trate to trade settlement.

12. For scrips traded and settled in Physical mode/ Optional Demat mode at the time of trading, the following groups have been identified:

    1. Group P consists of securities that are traded and settled in physical mode / optional demat mode.
    2. Group ZP denotes scrips of non-compliant companies (non-compliance with clauses of Listing Agreement) & traded and settled in Physical mode/ Optional Demat mode.
    3. Group R denotes Rights Renunciation Forms - settled in Physical mode

BSE also provides a facility to the market participants for on-line trading of odd-lot securities in physical form in 'A', 'B', 'T' and 'Z' groups.

With effect from December 31, 2001, trading in all securities listed in the Equity segment takes place in one market segment, viz., Compulsory Rolling Settlement Segment (CRS).

The Securities of companies which are in demat can be traded in market lot of 1. However, the securities of companies which are still in the physical form are traded in the market lot of generally either 50 or 100. Investors having quantities of securities less than the market lot are required to sell them as "Odd Lots".

This facility offers an exit route to investors to dispose of their odd lots of securities, and also provides them an opportunity to consolidate their securities into market lots. This facility of selling physical shares in compulsory demat Securities is called an Exit Route Scheme. It can be used by small investors for selling up to 500 shares in physical form in respect of Securities of companies where trades are required to be compulsorily settled by all investors in demat mode.

The above content has been provided for informational purpose as it is in the best interest of every investor to be informed about these groups and make decisions on trading accordingly.

(Source: BSE)

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