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Journalism of Courage
Mumbai, Jan 13: The Bombay Stock Exchange BSE has effected a major reshuffle in the companies listed in its cash segment B group following a decision of the governing board of the exchange. It has decided to shift as many as 500 scrips from existing B1 group to B2 group and has also decided to transfer 179 stocks from B2 group to B1 group. This change will be effective from the new settlement beginning January 22.
Incidentally, from the same day BSE will also begin its new Borrowing and Lending of Securities Scheme BLESS. The decision to review the B8217; group was taken at the recently concluded meeting of BSE8217;s governing board and based on criteria like average turnover, average market capitalisation and value traded, the decision to reshuffle the B8217; was arrived at.
According to the list of the scrips which are to be shifted to the B1 group from the B2 group, the major change is that all the recently-listed media stocks will find a place in the more liquid and more volatile segment of the exchange. Besides these, major stocks which are being shifted from B2 to B1 includes a majority of IT stocks.
The media stocks which will be transferred to B1 group includes Balaji Telefilms, Cinevista Communications, G.V.Films, Jain Studios Ltd, Mukta Arts, Sahara Media Communication, Tips Industries and Top Cassettes Ltd.
According to marketmen, shifting of all media stocks and other active new economy stocks could be a part of very well thought-out process the exchange has undertaken. These stocks fit in well with the criteria set out by the authorities and their shifting to a more liquid group will impart them greater liquidity which will make them eligible for one more promotion. However, a BSE official said that an expansion or reduction in the A8217; group requires the formal consent of the market regulator Sebi.
The notable change among stocks which will be shifted to B2 group from B1 is that this list includes majority of the old economy stocks which have lost the investors8217; interest.
The BSE has about 8700 stocks listed on the exchange. Of these, 141 stocks are listed on the most liquid and volatile segment of the exchange 8211; the A8217; group. In the cash segment, the B1 group has about 1083 stocks, B2 group lists 3734 stocks, while the BSE has transferred about 1500 stocks to the Z group. After this reshuffle, the size of B1 group will come down from the present 1083 to 762 and the size of the B2 group will swell to over 4000 stocks.
While in the A group most of the 141 stocks are traded daily, it is not so in the other groups. In the B group, on an average, 1500 stocks are traded on a daily basis. After this reshuffle, the size of the B2 group would swell, taking the number of infrequently traded stocks higher, brokers said.
