What Should Beginners Know About BSE Groups?


If you are thinking of investments in the near future, you should be confident about everything you do. You cannot simply do the conjecture because that may harm you. Investments have to be on the basis of your knowledge and information acquired. If you are thinking about investing in BSE or the Bombay stock exchange, make sure you know the basics and things that impact you.  Do you know about the different groups in bse?

Well, this post is going to walk you through some important things about the groups and base, and it could help you make sensible choices. Now, under the realm of bse groups, you would find mainly two stock exchanges in India – the national stock exchange (NSE) as well as the Bombay stock exchange (bse). These exchanges have categorized the overall listed companies into specific groups. With this assistance, traders can easily choose the scripts based on such a categorization.

You should know that bse is the oldest stock exchange in the entire region of Asia, and it has more than fifty-five hundred companies listed. Hence this makes bse the exchange with the hugest number of companies that are listed across the world. Similarly, bse has even categorized its scripts into diverse types of bse groups. So you must be pondering or scratching your head and asking yourself, what are these bse groups, right?  Well, have a quick peep into the same below:


Classification Of BSE Groups

Bombay Stock Exchange BSE

Bse has simply grouped the stocks in the equity segment into the below-given groups. It is based on certain types of qualitative and even quantitative parameters. Moreover, such a thing was done for the overall guidance and also for the advantage of the investors. The prime bse groups are a’, then ‘b’, ‘t’, and even ‘z’ groups.

Group a

This group has the stocks which get most actively traded in the realm of bse stock exchange. You can easily read the criteria for “a” group companies once you explore the specific group. For now, all you should understand that this group owns the actively traded stocks.

Group t

This is the group that includes the stocks that are simply settled on a trade-to-trade type of basis. There is no intra-day trading permitted for such types of shares that fall under this group. It is for this reason that the delivery of these stocks is grounded on a t+2 basis.

Group z

This group is the one that got introduced in the year 1999. This group includes the companies that simply have failed to comply with any sort of the below-given conditions:

  • The needs for the exchange’s listing.
  • Those companies have simply been unsuccessful to resolve the complaints registered by the investors.
  • The companies simply have not made the precondition requirements with the depositories, that is, cdsl as well as nsdl for dematerialization of their overall securities.

Group b

This is the group that is made up of the companies that do not fall under the above-mentioned groups i.e. A t and even z.

Other types of categories:

Group g

This is the group that owns government securities that get traded by retail investors.

Group f

Now, this is the group that includes fixed income securities of the overall debt market segment.

Group xd, xc,xt,x

You know some stocks are also there that have been also classified into sub-segments as x as well as xt. Xt include all those stocks that are just listed on bse and are simply settled on a trade-to-trade grounds. Other stocks that are just listed on bse fall under the sub-category x. Previously there were just xc and even xd groups that were later blended into group x on the day of 24th November 2017.

Quick points that you should know about:

  • India primarily has two stock exchanges: the national stock exchange (NSE) and the Bombay stock exchange (BSE).
  • NSE has characterized its listed stocks from the view of investors. On the other side, bse has characterized from the overall view of the stocks.
  • Bombay stocks exchange has grouped the stocks in the equity segment into different groups on the grounds of certain qualitative and even quantitative parameters.

The point is simple, once you understand the criteria that is applicable to different stock groups on this bse, the volume of effort you require to make to learn the main characteristics of a company get reduced. Instead of needing to check if a company’s shares are liquid and even whether it has proper management, investors can easily take a shortcut by checking out in case the company belongs to something like a group. Hence, they would simply do the research and homework further only if the answer is positive.



Bombay Stock Exchange BSE

To sum up, having a fair knowledge of BSE groups can be a great plus for your investment ventures. Since you know this much now, expand your wings through the right investments at the right time.

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Praneet Samaiya
the authorPraneet Samaiya