Bse Lines Up Major Stocks Reshuffle
In a major restructuring exercise, the Bombay Stock Exchange (BSE) is conducting the first-ever review of the over 6,000 stocks listed at the exchange.
The BSE plans to expand B1 group stocks, while trimming the B2 group by month- end. The exchange also plans to enlarge the A group, which currently contains about 80 stocks, by adding some more scrips from the B1 group. There will be additions in the A group also. However, these will not be in the form of replacement of existing stocks, said BSE president Damani.
According to top exchange officials, the B1 group will be increased from the existing 700 to over 1,000 stocks. The exchange has already initiated a process to identify high networth scrips, which will be accommodated in the A and B1 groups. ``There would be a clearer picture on the restructuring as by this time the financial results from corporates would have come through, said Damani.
The B1 traded turnover at the exchange has undergone a dramatic change in recent weeks, with the foreign institutional investor interest moving up sharply in this group.
The traded turnover in this group rose from Rs 24.55 crore on April 30, 1997, to Rs 49.49 crore yesterday, a rise of 103 per cent.
A group volumes have been steady in the same period, ranging from Rs 599 crore to Rs 633 crore.
It is learnt that the revamp of the group is being carried out to provide more depth to the market.
The BSE brass admitted that the last restructuring exercise, which was carried out over one-and-a half years back, was a token exercise at a time when the exchange was struggling to improve trading volumes.
Revised forward trading had not yet been introduced and clearance for the proposed expansion of the Bombay On-Line Trading system was awaited at that juncture.
The trading concentration over the years has been confined to a few A group scrips. The exchange, which had restructured the Sensex and made changes in the B1 and B2 groups, is now making a conscious effort to see that the trading interest at the market is not limited to 5-10 stocks.
We are now in the process of identifying the select groups from the B2 group on the basis of performance of the company and its dividend track record, said Damani.