BSE to introduce new ‘W’ group from Friday for company warrants
Leading stock exchange BSE will classify warrants issued by companies into a separate group, called ‘W’, starting from Friday.business Updated: Dec 02, 2015 18:07 IST
Leading stock exchange BSE will classify warrants issued by companies into a separate group, called ‘W’, starting from Friday.
Currently, all types of warrants are traded under ‘F’ Group.
The move follows after BSE (formerly known as Bombay Stock Exchange) launched three new sub-groups -- ‘XC’, ‘XD’ and ‘XT’ -- for companies listed exclusively on its platform last month.
The new sub-segments by the stock exchange are based on companies’ specific characteristics such as low to moderate market capitalisation and lower contribution to the overall trading turnover.
“Presently, all types of Warrants are traded under ‘F’ Group. It is decided to classify such warrants issued by companies into a separate Group called ‘W’ with effect from Friday, December 4, 2015,” BSE said in a circular.
It further said that warrants issued by Housing Development Finance Corporation Ltd and Gujarat NRE Coke Ltd will be transferred from Group ‘F’ to ‘W’.
Currently, the securities traded on BSE’s equity segment have been classified into ‘A’, ‘B’, ‘T’ and ‘Z’ groups on certain qualitative and quantitative parameters, for guidance and benefit of the investors.
The ‘F’ group represents fixed income securities, while ‘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.
Besides, the ‘Z’ group includes companies which have failed to comply with its listing requirements and failed to resolve investor complaints, among others.
In a separate circular, BSE said it will introduce a new facility to enter orders in specialised contracts of ‘Straddle and Paired options’ in the currency derivatives segment from next week.
Straddle and Paired option contracts will allow a trader to take positions across two different option contracts belonging to the same underlying asset and same expiry by entering a single order.
BSE said it is introducing “a new facility to enter orders in specialised contracts of Straddle and Paired options in its Currency Derivatives segment with effect from Monday, December 7, 2015”.