Timing
Trading on the BOLT System is conducted from Monday to Friday between 9:15 a.m. and 3:30 p.m. normally. Refer Notice No. 20101014-8 for call auction.
Groups
The Securities traded on BSE have been classified into various groups.
BSE has, for the guidance and benefit of the investors, classified the Securities in the Equity Segment into 'A', 'B', 'T' and 'Z' groups on certain qualitative and quantitative parameters. Criteria for "A" Group Companies
The "F" Group represents the Fixed Income Securities.
The "T" Group represents Securities which are settled on a trade-to-trade basis as a surveillance measure.
Trading in Government Securities by the retail investors is done under the "G" group.
The 'Z' group was introduced by BSE in July 1999 and includes companies which have failed to comply with its listing requirements and/or have failed to resolve investor complaints and/or have not made the required arrangements with both the depositories, viz., Central Depository Services (I) Ltd. (CDSL) and National Securities Depository Ltd. (NSDL) for dematerialization of their securities.
BSE also provides a facility to the market participants for on-line trading of odd-lot securities in physical form in 'A', 'B', 'T' and 'Z' groups and in rights renunciations in all groups of Securities in the Equity Segment.
With effect from December 31, 2001, trading in all securities listed in the Equity segment takes place in one market segment, viz., Compulsory Rolling Settlement Segment (CRS).
The Securities of companies which are in demat can be traded in market lot of 1. However, the securities of companies which are still in the physical form are traded in the market lot of generally either 50 or 100. Investors having quantities of securities less than the market lot are required to sell them as "Odd Lots". This facility offers an exit route to investors to dispose of their odd lots of securities, and also provides them an opportunity to consolidate their securities into market lots.
This facility of selling physical shares in compulsory demat Securities is called an Exit Route Scheme. This facility can also be used by small investors for selling up to 500 shares in physical form in respect of Securities of companies where trades are required to be compulsorily settled by all investors in demat mode.
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 "X", and "XT". At the time of review any securities falling in Trade-for-Trade segment ('DT' or 'T' groups) are classified under "XT" sub-segment.
Notice No. 20171124-33 for Merger of 'XC' and 'XD' Groups to 'X' Group
Further, a review of this sub-segment will be carried out on half yearly basis. The securities that are classified in the 3 sub-segments are given in
Notice no. 20160128-35 dated Jan 28, 2016.
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Listed Securities
The securities of companies, which have signed the Listing Agreement with BSE, are traded as "Listed Securities". Almost all Securities traded in the Equity segment fall in this category.
Permitted Securities
To facilitate the market participants to trade in securities of such companies, which are actively traded at other stock exchanges but are not listed on BSE, trading in such securities is facilitated as " Permitted Securities" provided they meet the relevant norms specified by BSE
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Tick Size:
Tick size is the minimum difference in rates between two orders on the same side i.e., buy or sell, entered in the system for particular Security. Trading in Securities listed on BSE is done with the tick size of 5 paise.
However, in order to increase the liquidity and enable the market participants to put orders at finer rates, BSE has reduced the tick size from 5 paise to 1 paise in case of units of mutual funds, securities traded in "F" group and equity shares having closing price up to Rs. 15 on the last trading day of the calendar month. Accordingly, the tick size in various Securities quoting up to Rs.15 is revised to 1 paise on the first trading day of month. The tick size so revised on the first trading day of month remains unchanged during the month even if the price of Securities undergoes a change.
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Computation Of Closing Price Of Securities
The closing price of Securities is computed by BSE on the basis of weighted average price of all trades executed during the last 30 minutes of a continuous trading session. However, if there is no trade recorded during the last 30 minutes, then the last traded price of Security in the continuous trading session is taken as the official closing price.
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Basket Trading System
BSE has commenced trading in the Derivatives Segment with effect from June 9, 2000 to enable investors to hedge their risks. Initially, the facility of trading in the Derivatives Segment was confined to Index Futures. Subsequently, BSE has introduced the Index Options and Options & Futures in select individual stocks.
Investors in the cash market had felt a need to limit their risk exposure in the market to the movement in S&P BSE SENSEX. With a view to provide investors the facility of creating S&P BSE SENSEX-linked portfolios and also to create a linkage of market prices of the underlying securities of S&P BSE SENSEX in the Cash Segment and Futures on S&P BSE SENSEX, BSE has provided to the investors as well as to its Members a facility of Basket Trading System on BOLT with effect from August 14, 2000. In the Basket Trading System, the investors through the Members are able to buy/ sell all 30 Securities of S&P BSE SENSEX in one go in the proportion of their respective weights in the S&P BSE SENSEX. The investors need not calculate the quantity of S&P BSE SENSEX Securities to be bought or sold for creating S&P BSE SENSEX-linked portfolios and this function is performed by the system. The investors can also create their own baskets by deleting certain Securities from 30 Securities in the S&P BSE SENSEX. Further, the investors can alter the weights of securities in such profiled baskets and enter their own weights. The investors can also select less than 100% weightage to reduce the value of the basket as per their own requirements. Once an order is placed in the basket entry screen, the orders will follow the path of Market Orders with order retention as IOC.
To participate in this system, the Members need to indicate the number of S&P BSE SENSEX basket(s) to be bought or sold, where the value of one S&P BSE SENSEX basket is arrived at by the system by multiplying Rs.50 to the prevailing S&P BSE SENSEX. For example, if the S&P BSE SENSEX is 15,000, the value of one basket of S&P BSE SENSEX would be 15000 x 50= i.e., Rs. 7,50,000/-. The investors can also place orders by entering value of S&P BSE SENSEX portfolio to be brought or sold with a minimum value of Rs. 50,000 for each order.
The Basket Trading System provides the arbitrageurs an opportunity to take advantage of price differences in the underlying S&P BSE SENSEX and Futures on the S&P BSE SENSEX by simultaneous buying and selling of baskets comprising the S&P BSE SENSEX Securities in the Cash Segment and S&P BSE SENSEX Futures. This would provide a balancing impact on the prices in both cash and futures markets.
The Basket Trading System thus meets the need of investors and also improves the depth in cash and futures markets.
The trades executed under the Basket Trading System are subject to intra-day trading and gross exposure limits available to the Members. The VaR, MTM margins etc, as are applicable to normal trades in the Cash Segment, are also recovered from the Members.
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