To strengthen capital market operations, stock exchange BSE is likely to soon create two new groups for securities representing large and small companies listed exclusively on its platform.
With over 4,000 firms exclusively listed on it, BSE would identify companies on certain specific characteristics such as moderate to low capitalisation, few public shareholders, very low trading volumes as compared to total trading turnover.
Based on these parameters it would classify them accordingly in two separate groups.
BSE Managing Director and CEO Ashishkumar Chauhan told PTI that the groups are likely to be formed in a month's time.
"There would be one group for small-stock companies and the other for large stocks which would help brokers identify the stocks they want to trade in," Chauhan said.
He also said the move would ensure better surveillance and curb price manipulation of stocks in the capital markets.
"The objective is to ensure market integrity and protect the interests of the investors," a BSE spokesperson said.
The securities traded on BSE have been classified into various groups.
For the guidance and benefit of the investors, the securities in the equity segment have been classified into 'A', 'B', 'T' and 'Z' groups on certain qualitative and quantitative parameters The 'F' group represents the fixed income securities.
The '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, have failed to resolve investor complaints or have not made the required arrangements with both the depositories - CDSL and NSDL -- for dematerialisation of their securities.
