BSE tweaks norms for classifying stocks in 3 new groups

Cos with 6-month average market capitalisation of Rs 1,000 cr and more than 5,000 public shareholders would be excluded from sub-segments

Leading stock exchange BSE will bring in changes to parameters for determining classification of securities exclusively listed on its platform for three new sub-groups -- XC, XD and XT -- from February 1.

Based on market feedback, BSE has now decided that companies with six-month average market capitalisation of Rs 1,000 crore and more than 5,000 public shareholders would be excluded from the sub-segments.

So far, the companies with 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.

BSE had launched three new sub-groups for companies listed exclusively on its platform on November 2, last year, to strengthen capital market framework.

The new sub-segments XC, XD and XT by the stock exchange involves classification of companies based on specific characteristics such as low to moderate market capitalisation, lower contribution to overall trading turnover.

BSE has placed 226 securities under 'XC' sub-segment. These equities have a six-monthly average (full) market cap of more than Rs 100 crore and have more than 1000 public shareholders.

Further, 1,389 securities have been listed in 'XD' sub-segment.

Besides, 952 securities within 'XC' or 'XD' and are presently under restricted trade category (T group) have been classified under 'XT' sub-segment.

"Based on market feedback it has been decided to amend the parameters for inclusion in exclusive stocks that would be further divided in to XC, XD and XT sub-segments," BSE said in a recent notification.

The sub-segments are in addition to existing groups such as A, B, T and Z on BSE's equity segment to guide and benefit the investors.

T group represents securities which are settled on a trade-to-trade basis as a surveillance measure.

Besides, the Z group includes companies, which have failed to comply with its listing requirements and failed to resolve investor complaints, among others.