Subject: Classification of securities of companies under “XC”, “XD” and “XT” sub-segments
Trading members and other Market participant are aware that as a part of Exchange’s role toward ensuring market integrity, BSE is continuously looking for further strengthening of the market regulation framework particularly in respect of securities of companies that are only listed/traded at BSE, considering their specific characteristics such as large number of companies, low to moderate market capitalization, lower contribution to overall trading turnover and relatively higher attention required to be devoted to these securities by the Exchange, from a regulatory due diligence and monitoring standpoint.
Accordingly, equity securities of companies that were only listed/traded at BSE and satisfied certain parameters were categorized into 3 separate sub-segments called “XC”, “XD” and “XT” effective from November 2, 2015. It was also mentioned in the Exchange circular dated October 15, 2015, intimating the market about the same that periodic review of the exclusive securities will be carried out on a half yearly basis.
However, based on market feedback it has been decided to amend the parameters for inclusion in exclusive stocks that would be further divided in to XC XD and XT sub-segments.
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 February 1, 2016.
Criteria for exclusion from “XC’, “XD” and “XT” sub-segments:
1. Where the 6 month Average Market Cap > Rs.1000 Cr. And No of Shareholder > 5000.
2. Securities that are constituents of either of 4 indices viz. S&P BSE SENSEX, S&P BSE100, S&P BSE200, S&P BSE 500.
3. Securities listed and traded on SME/SME ITP Segment.
4. Securities which are in “P” and “Z” group (these securities will remain in these groups)
Securities that do not fall within any of the above exclusions would be eligible for classification under “XC”, “XD” and “XT” sub-segments as under:
1) Those securities that have a 6 monthly average (full) market cap of more than Rs. 100 crores and have more than 1000 public shareholders are classified in "XC" sub-segment.(226 securities)
2) The balance securities are classified in "XD" sub-segment. (1389 securities)
3) Further, those securities within “XC” or “XD” and are presently under “XT” or “T” group are classified under “XT” sub-segment. (952 securities)
Daily, Weekly, Monthly, Quarterly and Annual Price Bands effective from October 1, 2015 (refer to notice no.20150806-24 of August 6, 2015 and notice no.20150930-36 of September 30, 2015) would apply to the securities classified under all the above 3 sub-segments.
Alphabetical list of securities that are being shifted under sub-segment "XC", “XD” and "XT" is attached as Annexure I. It may be noted that review of this sub-segment will be carried out on half yearly basis.
For & on behalf of BSE Ltd.
Khushro Bulsara Soundararajan. V.
Sr. Gen Manager Sr. Gen Manager
Encl: a/a
28th January, 2016 |