NSE and BSE Stock Series: Meaning, Difference & their Categories

Table of Contents

What does NSE mean?

NSE stands for the National Stock Exchange. It is the Stock Exchange in India based on the volume traded.

What does BSE mean?

BSE or Bombay Stock Exchange which is India’s oldest Stock exchange that has close to 5000 shares listed on its platform. 

Both BSE and NSE have categorized their listed stocks using particular criteria. The categorization is done for ease of understanding and enables traders and investors in picking stocks.

Through this blog you can get a complete idea about different groups of NSE and BSE.

What's the significance of the various groups on NSE and BSE?

Stocks listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are grouped based on a variety of factors such as market capitalization, trading volume, and other qualitative parameters. This grouping helps investors differentiate between stocks and assess the associated risks.

Why are NSE and BSE stocks categorized?

The categorization of stocks aims to streamline transactions and assist traders in making informed decisions. These groups include indices such as Nifty 50, Sensex, BSE Midcap, BSE Small cap among others.

What are the NSE series stocks?

EQ, IQ, BL, GC, IL, BT and BE are Series of NSE Stocks, Each Series is used for Different Trading Purpose.

EQ Series:

Represents equity transactions, allowing investors to engage in both equity delivery and intraday trading.

BL Series:

Facilitates bulk stock orders, with transactions involving at least five lakh stocks or a value of Rs. 5 crores, executed in a single instance via the ‘Block Deal Window’.

BE Series:

It stands for Book Entry and facilitates equity delivery, Trade for Trade or T segment trading. In other words, you can only trade such stocks as equity delivery. Intra-day trading is not allowed.

BT Series:

This series is an exit route for small investors. However, they are allowed to sell physical shares with a maximum sell limit of 500 stocks.

GC Series:

Reserved for trading treasury bills and government securities.

IL Series:

This series is only meant for Foreign Institutional Investors (FII). Such investors can only trade in the securities of those companies where the FII’s investment limit has not been maximized yet.

IQ Series:

Exclusively for Qualified Foreign Investors (QFI) to trade stocks without depositor approval.

Notes:
Retail investors mostly trade under NSE – EQ and BE categories only.
・Intraday trading is mostly done under NSE EQ.
・The ‘delivery percentage’ under BE category is 100%.

What are the BSE series stocks?

The Bombay Stock Exchange (BSE) has Categorized stocks into several groups namely ‘A’, ‘T’ ‘S’, ‘Z’ and ‘B’ on its platform, each series serving different trading purposes.

Group A Criteria :

The following Criteria should be fulfilled to get enlist in this group.

1. Need to be listed on BSE for a minimum of three months.

2. Need to be traded on at least 98% of days in the previous quarter.

3. Need Approval from the Department of Surveillance and Supervision.

4. High liquidity and trading volumes.

5. Group A stocks are mostly liquid and have high trading volumes which helps to follow a rolling settlement process for their settlement cycle.

Group T Criteria :

The criteria on which stocks are included in Group T are :

1. Stocks which are Newly listed.

2. Stocks exhibiting abnormal volatility.

3. Stocks with overvalued Price-to-Earnings ratios (greater than 25% variation).

4. Stocks which are not in the derivative segment.

Group M Criteria :

1. stocks of small or medium-sized companies (SME).

2. Turnover less than or equal to Rs. 5 crores.

3. Stocks having low trading volume indicating low liquidity.

Group Z Criteria :

1. Consists of companies failing to meet the exchange’s listing requirements.

2. Unable to address investor complaints are included in this category.

Group B Criteria :

1. All stocks not in Group A, T, M, or Z fall under this category.

2. Features average trading volume.

3. Follows a rolling settlement process.

Conclusion

Understanding stock categorization on NSE and BSE is essential for traders. It guides decisions on suitable stocks for day trading or long-term investments, crucial for informed investing.

FAQs

Factors such as market capitalization, trading volume, and qualitative parameters are considered.

Categorizing stocks aids in streamlining transactions and assisting traders in making informed decisions.

EQ, IQ, BL, GC, IL, BT, and BE are the different series of NSE.

EQ series allows investors to engage in equity delivery and intraday trading.

Group T includes newly listed stocks, those with abnormal volatility, overvalued Price-to-Earnings ratios, and those not in the derivative segment.

Group M consists of stocks from small or medium-sized companies with low turnover and trading volume.

Arunava Chatterjee
Founder of INVESMATE. I am a Certified Research Analyst, Value & Growth Investor, Trainer and Tech Entrepreneur. With 15 years of capital market experience, I have trained 10000+ students on INVESMATE. I have created several YouTube videos, mostly related to in-depth fundamental analysis.



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