Aiming to strengthen capital market framework, top stock exchange BSE will launch three new sub-groups for companies listed exclusively on its platform, from November 2.
The new sub-segments 'XC', 'XD' and 'XT' by the stock exchange considering the companies specific characteristics such as low to moderate market capitalisation, lower contribution to overall trading turnover.
Besides, the groups would include listed firms which require relatively higher attention by the exchange, from a regulatory due diligence and monitoring standpoint.
"As a part of exchange's role towards ensuring market integrity, BSE is continuously looking for further strengthening of market regulation framework particularly in respect of securities of companies that are only listed/traded at the stock exchange," BSE said in a notice today.
"It is therefore decided to classify equity securities of companies that are only listed/traded at BSE and satisfy certain parameters into separate sub-segments called 'XC', 'XD' and 'XT', effective from November 2, 2015," it added.
As per the guidelines for the new segments, securities that have a six monthly average market capitalisation of more than Rs 100 crore but less than Rs 1,000 crore and have more than 1,000 public shareholders are classified in 'XC' group.
The balance securities would be classified in 'XD' sub-segment, BSE said.
Further, securities falling in restricted trading category like 'DT' and 'T' groups at present would be categorised under 'XT' sub-segment, it added.
BSE said firms having an average daily turnover of more than Rs 500 crore in equity segment of the exchange and forming part of indices like BSE 100, BSE 200, BSE 500 and BSE All Cap would be excluded from new segments.
Among others, companies with more than 10,000 public shareholders and minimum average pre-tax operating profit of Rs 15 crore during the three preceding financial year would also not be eligible for the new sub-segments.
Currently, the 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.
