Explained: Different categories of stocks on the BSE
The Bombay Stock Exchange classifies all the listed stocks under different groups such as ‘Group A’, ‘Group T’, etc. This classification is done after assessing various qualitative and quantitative parameters.
But what do these groups signify? Let’s find out!
Group A
This group comprises the most actively traded stocks on the Bombay Stock Exchange. The BSE stock exchange has listed its criteria for stocks that would be included under this group. One such criterion is that a company must have been listed for at least of three months, with the exception of
- A company, which is permitted for trading in the F&O segment from the date of its listing.
- A company listed post any corporate action that involves a scheme of arrangement for either of the following- merger, demerger, capital restructuring etc.
Group B
This group comprises stocks that do not fall under either of the group A, T or Z.
Group T
This group comprises stocks that as a surveillance measure, are settled on a trade-to-trade basis.
Group Z
This group comprises of those companies which have failed to comply with their listing requirements, have not resolved investor complaints or have not made the necessary arrangements with the depositories, namely, Central Depository Services Ltd. (CDSL) and National Securities Depository Ltd. (NSDL) for dematerialization of their securities.
While the above-mentioned groups are the main ones, here are the details about other groups.
Group X and XT
Group X comprises stocks that are exclusively listed to BSE. Similarly, group XT comprises of stocks that are exclusively listed to BSE and are settled on a trade-to-trade basis.
Group F
This group comprises fixed income securities, which are a part of the debt market segment.
Group G
This group comprises government securities that are traded by retail investors.