Classification of securities of companies under “XC”, “XD” and “XT” sub-segments

Oct 15, 2015 04:10 IST | capital market

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Trading members and other market participants are aware that as a part of Exchange’s role towards 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.

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.

Criteria for exclusion from “XC’, “XD” and “XT” sub-segments:

Sr. No.	Particulars
1	Traded on any nationwide stock exchange having an average daily turnover of the said Exchange greater than Rs. 500 crores in equity segment.
2	Security forming part of any of the indices such as S&P BSE 100, S&P BSE 200, S&P BSE 500 and S&P BSE All Cap indices.
3	No. of public shareholders more than 10,000.
4	Companies with minimum average pre-tax operating profit of Rs. 15 crores during the 3 preceding financial years
5	Securities with average daily trading value more than Rs. 5 lac during a 3 month period. AND Daily trading value of Rs. 3 lacs during a 3 month period. AND Traded on 80% of the trading days during a 3 month period. AND Avg. Market Cap during a 3 month period of more than Rs. 200 crores.
6	Securities with six monthly average (full) market capitalization of Rs. 1000 crores AND Number of public shareholders being more than 1000

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 thathave a 6 monthly average (full) market cap of more than Rs. 100 crores but less than Rs. 1000 crores and have more than 1000 public shareholders are classified in "XC" sub-segment.

2) the balance securities are classified in "XD" sub-segment.

3) further, securities falling in ‘DT’ and ‘T’ groups at present that do not satisfy any of the above exclusions are classified under “XT” sub-segment.

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 Girish Joshi

Sr Gen Manager – Listing Compliance Sr Gen Manager – Listing Operations

Encl: a/a

Attachments

Annexure I to Notice 15102015.pdf

Annexure I to Notice 15102015.xls