Grouping of Shares - BSE

Discussion in 'Fundamental Analysis' started by adultvish, Jan 26, 2006.

  1. adultvish

    adultvish Active Member

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    Hi members:cool:

    I will be thankful if you people can help me understanding the following:

    When we get quote of a script, especially on BSE, we find the group of the script mentioned such as A, B1, B2, C, T, Z, TS etc. :confused: I will be grateful if you can help me understand the funda behind such grouping and how to use it. I tried to get some answer on BSE site and other sites too but of no use. Even ICICI and HDFC sites do not clear the concept.

    Thanks in Advance.

    Adultvish:)


     
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  2. moneylaundrer

    moneylaundrer Member

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    Hi adultvish

    I will try to respond to ur query with knowledge i have of the scrips

    These groupings are done primarily on the basis of
    1:Compliance with SEBI parameters
    2:Trading and settlement cycles

    Of the lot
    "A" "B1,B2" "C" "Z" are from the equities and "F" is from debt markt..

    'A' Group is a category where there is a facility for carry forward (Badla)to the next settlement cycle. These are companies with fairly good growth record in terms of dividend and capital appreciation. The scrips in this group are classified on the basis of equity capital, market capitalisation, number of years of listing on the exchange, public share holding, floating stock, trading volume etc.

    'B1,B2'Group is a subset of the other listed shares that enjoy higher market capitalisation and liquidity than the rest.

    'C' group covers the odd lot securities in 'A', 'B1' & 'B2' groups

    'T'' Also termed as the trade to trade group this category comprises of shares which have to be settled in delivery for all buys and sells and square off of bought and sold positions during the day is not permitted. This is a part of the survelience from the BSE to counter any ackward unwarranted movements in such scrips

    'Z' Group category comprises of shares of the companies which does not comply with the rules and regulations of the Stock Exchange and are at times suspended from trading due to the above said reasons

    The trading cycle for the above scrips is from monday to friday and starting sat(carry forward for A scrips) the settlement by payment of money and delivery of securities in the following week.

    'F' Group represents the debt market segment

    The trading cycle for scrips under this group starting thursday ending next wednesday and then the settlement by friday.

    Hope this helps u in ur doubt..

    Cheers
    ML:)
     
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  3. adultvish

    adultvish Active Member

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    Hi ML
    Very many thanks for your efforts and guidance. Still one confusion. As has been mentioned by you, "'C' group covers the odd lot securities in 'A', 'B1' & 'B2' groups" please enlighten me what actually odd lot securities signify? Further, S &TS group securities are also being traded on BSE, what does they signify. And one last querry please, when we say that 'Z' Group category comprises of shares of the companies which does not comply with the rules and regulations of the Stock Exchange and are at times suspended from trading due to the above said reasons. Does this mean that a company with Z group may have trading provided it is not suspended at present though it might have been suspended during the past?

    Thank you Very much for your patience.

    Adultvish
     
  4. moneylaundrer

    moneylaundrer Member

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    Hi adultvish again

    To understand odd lot u need to understand market lot first

    Market lot is the minimum number of shares of a particular security that must be transacted on the Exchange.

    Number of shares that are less than the market lot are known as odd lots. Under the scrip based delivery system, these shares are normally traded at a discount to the prevailing price for the marketable lot.

    As to the query on S and TS group please go thru the following link

    http://www.bseindia.com/about/IndoNext.asp

    similarly regarding Z scrips ne information on the history of the company is available at the BSE..Though i recommend to stay away from such scrips for there is little information in their fundamentals..

    Regards
    ML
     
  5. adultvish

    adultvish Active Member

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    Hi Money Launderer

    Very Many Thanks for your support and guidance.
    I am obliged

    Adultvish
     
  6. marcus

    marcus Active Member

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    Moneylaundrer thanx for your crystal clear explanation, it was very helpful to me as well
     

  7. vizzie

    vizzie Member

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    Hi ML,

    nicely xplained..
    way 2 go ..

    cheers
    vizzie
     
  8. abhijitpatalia

    abhijitpatalia New Member

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    Location:
    My native is Jamngar but I m here in Mumbai
    can any body tell me why it is compulsory to take delivery in T group shares
     
  9. jayshil

    jayshil New Member

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    :mad: A,B,S group shares can be sq off same day What about "F" & "G" group
     
  10. vvramanan

    vvramanan New Member

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    Thank you for the forum as i have got reply for the query.
     
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