Classification of scrips in group ‘A’

It has been decided to adopt the following eligibility criteria for inclusion of scrips in group ‘A’:

1. Company must have been listed for minimum period of 3 months.


a. The Company can be directly listed in group ‘A’ provided the market capitalisation of a company being listed, based on its issue price, is higher than the average market capitalisation of 100th company in the existing group ‘A’ as per the ranking based on preceding 3 months data.

b. Any company permitted to be traded in F&O segment from date of its listing shall be directly listed in group ‘A’.

c. Companies listed subsequent to any corporate action involving merger/ demerger/ capital restructuring etc.

2. Companies traded for minimum 98% of the trading days in past 3 months shall be considered eligible.

3. Companies with minimum non-promoter holding of 10% as per the shareholding pattern of most recent quarter shall be considered eligible. The criteria of minimum 10% non-promoter holding shall not be applicable to public sector undertakings (PSUs).

4. The weightage of 75% and 25% shall be given to ranking on three monthly average market capitalisation and traded turnover respectively to arrive at the final ranks.

5. The list derived, based on final rank shall be screened for compliance and investigation. Based on this screening, the list of top 200 companies shall constitute group ‘A’.

6. The group re-classification shall be reviewed twice in a year i.e. February and August.

7. On inclusion of any new Company in group ‘A’ based on criteria 1(a) or 1(b) detailed above, the last company in the existing group ‘A’, based on its final rank calculated on data preceding three months shall be excluded.

8. All companies not included in group ‘A’, ‘S’ or ‘Z’ shall constitute group ‘B’. The division of group ‘B’ into group ‘B1’ and ‘B2’ is being discontinued.

9. In addition to these groups, scrips may be classified in group ‘T’ and ‘TS’ as part of the surveillance measures.

The revised list of ‘A’ group companies shall be announced through a separate circular on February 18, 2008 and it shall come into effect from March 3, 2008.

Sourced From: MoneyControl

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