The common list of scrips for A group which was to be worked out by the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) has hit a roadblock with BSE writing to the Securities and Exchange Board of India that it cannot include some scrips which are there in the ALBM (automated lending and borrowing mechanism) list as they find place only in its 'Z' category of companies (those which have not complied with the listing agreement).
BSE president Anand Rathi said it had requested Sebi to come out with the final list of A group scrips for rolling settlement. Elaborating on BSE's position, he said the ALBM list includes a couple of scrips which are in the Z category on BSE and "some others whose whereabouts are not known to us".
Sebi had earlier indicated that both BSE and NSE would work out a common list of A group scrips as a precursor to introduction of facilities like carryforward in rolling settlement and ALBM in rolling settlement(ALBMRS).
It also decided that the eligibility criteria would include liquidity, market capitalisation and minimum floating stock.
However, Rathi maintained that apart from these parameters and impact cost of scrips the selection should also take into account the track record of the companies and qualitative aspects like management quality.
"We have so far not allowed companies with dubious records to enter the A group even if they satisfied all other eligibility criteria laid down by us. As a result, a number of scrips which could have found place in the A group have been excluded," he pointed out.
On commencing carryforward in rolling settlement(CFRS) in 15 scrips identified from the existing 165 scrips in rolling settlement mode, Rathi said that mock trading had already started and the exchange would hopefully start "live" trading by end of this month.
These 15 scrips which are eligible for CFRS and ALBMRS are Aftek Infosys, BFL Software, Chambal Fertilizers & Chemicals, Essar Steel, GAIL, Global Trust Bank, IndusInd Bank, Kotak Mahindra Finance, Lupin Laboratories, Morepen Laboratories, Orchid Chemicals & Pharmaceuticals, Pentafour Communications, Shri Adhikari Brothers, Sundaram Clayton and VisualSoft Technologies.
