capital_market012

May 19th, 2015
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What changes did the Bombay Stock Exchange (BSE) bring about recently in the A group? The BSE recently announced a reshuffling of the specified or A group to bring some highly volatile B1 scrips into the group. While the BSE had originally planned to replace 26 A group scrips with 26 B1 group scrips, and add one more to make the total number of scrips in the A group 150, it reviewed the decision .

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Capital marketWhat changes did the Bombay Stock Exchange (BSE) bring about recently in the A group?The BSE recently announced a reshuffling of the specified or A group to bring some highly volatile B1 scrips into the group. While the BSE had originally planned to replace 26 A group scrips with 26 B1 group scrips, and add one more to make the total number of scrips in the A group 150, it reviewed the decision subsequently and decided to shift only 17 scrips to the A group. With this, the exchange has pruned the specified list to 140 stocks from the original 150.To refresh your memory, A group scrips are those in which carryforward is allowed, and B group (B1 and B2) is where positions cannot be carried forward and you have to take delivery of shares compulsorily after the settlement is over.Why has the A group been reshuffled?The move is aimed at extending carryforward facility to more liquid scrips in the non-specified or cash group. The move will result in greater volatility and increased turnover in the scrips promoted and also the specified group as a whole. Investors can now carry forward their positions in the scrips by paying badla charges, without taking delivery of shares.Which parameters did the BSE use to select the new scrips for the A group?One parameter was market capitalisation. The scrip had to be among the top 300 scrips ranked in terms of market capitalisation. Another was liquidity. Th

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