MUMBAI, June 21: The Bombay Stock Exchange (BSE) has decided to promote 172 from the B2 group to the B1 group of non specified segment with effect from June 23.

With this transfer, the composition of B1 group would widen up to accommodate a total of 650 odd stocks for the new trading settlement beginning Monday, according to the BSE.

This promotion necessarily depends upon certain parameters fixed by the exchange like: the market capitalisation of the stock, the floating stock in the exchange, shareholding pattern of the company, intensity of trading, the value of the trades, seven year track record of the company and the profit and dividend record of the company from the time the stock is listed on the exchange.

Said BSE president M G Damani, ``In case of the promotion from B2 to B1 we can however be lenient about certain conditions, for this would impart more liquidity to the non specified section.

According to Damani, the promotion from B2 to B1 depends upon the intensity and value of trades contributed on an average for a few settlement cycles on the exchange. Further, market perception about the fundamentals of the company gets strengthened on the basis of the platform offered by the leading exchanges of the country.

The shifting of 172 scrips is expected to boost volumes on the BSE. The turnover on the BSE had gone up after the exchange shifted some scrips to the A group last week.

In the meantime, carry-forward rates on the Bombay Stock Exchange hovered around 18-21 per cent on an average for the third consecutive week, with a net quantity of 52.22 lakh shares.

Prominent feature of the carry forward session conducted on June 21, was the active participation of the newly added 22 stocks promoted from the B1 group to A wef from Monday, June 16. Burroughs Welcome attracted the highest carry forward charges of Rs 1.64 or 23.49 per cent p.a for a net outstanding position of 1,550 shares.

Of the 100 stocks allowed to be carried forward, only four stocks attracted backwardation charges. Lakme attracted a backwardation charge of 26 per cent computed at the weighted average badla rate of Rs 2.54.

Smithkline Beecham Consumer witnessed a record date badla (weighted average) of Rs 117.42. Siemens attracted a backwardation charge of Rs 0.84 and Smithkline Pharma of Rs 10.59.

The week ended June 20, had seen the Sensex rise by almost 150 points to touch a new high of 4,183. However, this increase in the Sensex was attributed to the bull run in certain index based stocks like Reliance, SBI and Hindustan Lever.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.