BSE to merge 2 sub groups for classifying stocks from December

New Delhi: Leading stock exchange BSE will merge two sub groups -- XC and XD-- into a new segment X from next month in order to streamline classification of securities listed on its platform.

Three sub segments -- XC, XD and XT -- were launched in November 2015 considering companies specific characteristics such as low to moderate market capitalisation, lower contribution to overall trading turnover.

The groups included listed firms that required relatively higher attention by the exchange from a regulatory due diligence and monitoring point of view.

In a circular, BSE said it "has decided to merge the groups XC and XD into new group X with effect from December 1, 2017".

"All the existing scrips belonging to groups XC and XD shall be shifted to group X. Further XC and XD groups shall be discontinued," it added.

BSE, further, said that there will be no change in XT group.

Currently, companies with a six-month average market capitalisation of Rs 1,000 crore and more than 5,000 public shareholders are excluded from the sub-segments --- XC and XD.

Prior to that, companies with a six-month average market capitalisation of Rs 1,000 crore and more than 1,000 public shareholders were allowed to be excluded from the segments.

At present, securities traded on BSE's equity segment have been classified into A, B, T and Z groups on certain qualitative and quantitative parameters, for guidance and benefit of the investors.

The F group represents fixed income securities, while T group represents securities which are settled on a trade-to- trade basis as a surveillance measure.

Trading in government securities by the retail investors is done under the G group. Besides, the Z group includes companies, which have failed to comply with its listing requirements and failed to resolve investor complaints, among others.