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What is ATM (AT The Money) Options?

ATM are those options having Strike near to Spot Price. Current Price and Underlying is near. Example : NIfty is trading at 16970 Put Option : 17100                    ITM 17000                    ATM 16900                    OTM ATM Option has Delta Value 0.50 why ??? Because Probability of Nifty going up or down from Current Price is 1/2 i.e. 50% Call Option : 17100                     OTM 17000                     ATM 16900                     ITM  For Option video : https://youtu.be/XbwnxRLp7L8 Exercise : Reliance : CMP 2200 Rs PUT Option : 1800 2100 2200 2500 Call Option : 2000 2100 2200 2400 You can Comment here for more updates and Query on any option related Topics.

Various Group BSEINDIA LIKE A,B,T,XT,XC,P AND SPECIALLY PERIODIC CALL AUCTION...




Complete summery of all group in BSE i.e. A,B,T,Z,P,F,G,XT,XC,PERIODIC CALL AUCTION ETC….. With few important concepts also.

Timing
Trading on the BOLT System is conducted from Monday to Friday between 9:15 a.m. and 3:30 p.m. normally. At 4 p.m. Post session will start.

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

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 complaintsand/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.

What is XT Trade?

A cross trade occurs when a broker executes an order to buy and sell the same security at the same time, in which both the buyer and seller are clients of the broker. A Cross Trade is represented by XT in the course of sales.

The revised norms for “XC”, “XD” and “XT” sub - segment shall be as under

Criteria for exclusion from “XC”, “XD” and “XT” Sub-segment :

Where the six month average market capitalization is > Rs.1000 Cr. And no of shareholders > 5000
Securities that are constituents of either of 4 indices viz. S&P BSE Sensex, S&P BSE 100, S&P BSE 200 and S&P BSE 500.
Where the six month average market capitalization is > Rs. 1000 Cr, and Net worth is more than Rs.150 Cr
Securities listed and traded on SME/SME-ITP segment
Securities which are in P and Z group (These securities will remain in their respective groups)

The securities that do not fall under any of the above exclusions would be eligible for classification under XC/XD/XT Sub-segment.
Those securities that have 6 month full average market capitalization > Rs. 100 Cr and have number of shareholder > 1000 will be classified under “XC” Sub-segment.
The balance securities are classified under “XD” Sub-segment.
Further those securities within “XC” or “XD” and are presently under trade for trade settlement are classified under “XT” Sub-segment.

Further trading members are requested to note that the review of “XC” or “XD” and “XT” sub-segment will be done on quarterly basis.

Trading Members are requested to note that the above referred revised norms would be applicable from the March 2017 quarter review.

The details of scripts group change pursuant to March 2017 quarter review based on the above norms is attached as Annexure – I. The Group change for the said scripts will be effective from Thursday July 6, 2017.

Which stocks will be traded in Periodic Call Auction Session?

All equity stocks which are classified as illiquid will be part of Periodic Call Auction Session.

What are the criteria for classifying the stock as illiquid?
Stocks shall be classified as illiquid, whether trading in normal market or in trade for trade settlement, if all the following conditions are met:

The average daily trading volume of scrip in a quarter is less than 10000;
The average daily number of trades is less than 50 in a quarter;
The scrip is classified as illiquid at all exchanges where it is traded.
For more info visit below link…..
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

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 paisa.

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 paisa to 1 paisain 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 paisa 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.

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.


Guidelines for selection of ‘A’ Group Companies…..
Company Selection Criteria for Analysis –
Companies classified under group ‘A’ & ‘B’ group shall be considered for the purpose of review. Further, companies traded under permitted category at BSE, listed mutual funds and scripts traded under physical mode shall be kept out of the ambit of classification in Group ‘A’.
Company must have been listed for minimum period of 3 months. However, exception to this criterion would be granted to:
A company, which is permitted for trading in F&O segment from date of its listing.
A company listed subsequent to any corporate action involving scheme of arrangement for merger/ demerger/ capital restructuring etc.
Companies traded for minimum 98% of the trading days in last quarter shall be considered eligible.
The list of companies is further screened for investigation & compliance by Dept. of Surveillance & Supervision (DOSS). The companies with negative investigation observation are considered ineligible for this review.
While selecting top 300 companies in Group ‘A’, following hierarchy shall be followed: 

Companies with the final rank within top 300 continuously for preceding three rolling quarters shall be included.
In case, a list derived from…..above, comprises of less than 300 companies, the companies with final rank within top 300 in preceding two rolling quarters shall be included. In case, a list derived from v (a) and v (b) above, comprises of less than 300 companies, the companies with final rank within top 300 in the current quarter shall be included. ‘A’ Group company which is not included in the final 300 companies but is a part of S&P BSE 500 will continue to be in the ‘A’ Group.

 Scoring Mechanism for Group ‘A’ Companies
1) Last quarter average free float Market Capitalization of the company (50%)
2) Last quarter average Turnover of the company (25%)
3) Corporate Governance (10%) (Source of Information – Latest Annual Report Submitted by the company)
4) Compliance Monitoring (10%) 5) Responsible/Sustainable Investment (Source of Information – Latest Annual Report Submitted by the company and Company Website) (5%).


What is P group share?

P shares are those which trade physically. The rate of such stock doesn't change daily.
Such company doesn't trade frequently moreover it buy and sell through transfer form of shares and the rate is consider at what rate it been transfer.
Their are many stock active in BSE where physical settlement is done. Mostly Stock trade in Lots not one share.


  

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