Periodic review of movement of securities to / from Trade for Trade

Securities satisfying the following criteria on the date of review shall be shifted to Trade for Trade. The securities satisfying any of the following criteria A, B, C or D shall be transferred to Trade for Trade segment.

Criteria A

• Price Earnings Multiple (P/E) less than or equal to 0 or greater than or equal to upper limit # subject to a minimum of 25 as on the relevant date 

AND

• Price Variation

For Mainboard: greater than or equal to 25% plus Sectoral Index* / Nifty 500 variation in the last 2 fortnights; subject to a minimum of 10% 

For SME: is greater than or equal to 25% plus Nifty 500 Index Fortnightly Variation subject to a minimum of 10%

AND

• Volatility greater than three times Nifty 50 volatility over a period of 6 fortnights. Volatility is computed as standard deviation of log normal close to close returns.

OR

Criteria B

• Price Earnings Multiple (P/E) greater than 0 but less than the upper limit # subject to a minimum of 25 as on the relevant date 

AND

• Price Variation

For Mainboard: greater than or equal to 50% plus Sectoral Index / Nifty 500 variation in the last 2 Fortnights 

For SME: greater than or equal to 50% plus Nifty 500 Index Fortnightly Variation in the last 2 Fortnights 

AND

• Volatility greater than three times Nifty 50 volatility over a period of 6 Fortnights.

OR

Criteria C

Criteria C shall be applicable to securities with a market capitalization of less than 2 times of the market capitalization** arrived at for the review (for Mainboard)/ Market Capitalization of less than 100 crores (for SME)

• Average daily volume variation for 2 Fortnights over previous 2 Fortnights greater than 200% + Average volume variation of Nifty 500 Index constituents. (computed as average of average volume variation month over month across the constituents as on relevant date, rounded off to the nearest 5%), subject to minimum of 200% (average daily volume in the recent 2 Fortnights being more than 1000 shares) 

AND

• Concentration (Gross Purchase plus Gross Sales) of Top 10 Clients on the basis of PAN during the 2 Fortnights more than 25% (Concentration excluding market makers shall be considered for SME)

AND

• Price Variation

For Mainboard: greater than or equal to 25% plus Sectoral Index* / Nifty 500 variation in the last 2 fortnights; subject to a minimum of 10% 

For SME: is greater than or equal to 25% plus Nifty 500 Index Fortnightly Variation subject to a minimum of 10%

OR

Criteria D

• Number of non-promoter shareholders less than 500 (For Mainboard)/ 100 (For SME) as per the latest shareholding pattern available with the Exchange.

(# If Nifty 50 P/E on the relevant date is in the range of 15-20, then the upper limit will be 30. If Nifty 50 P/E>20 or <15 then the difference rounded off to nearest number will be added to or subtracted from 30).

(*In case a particular Sectoral Index is available only on one exchange the other exchange shall also use the same to compare price variation in securities of the concerned sector for the purpose of shifting to Trade for Trade segment).

(**Market capitalization threshold shall be linked to the Nifty / Sensex movement between December 01, 2003 taking base as Rs. 200 crores and present quarterly relevant date (after rounding off to the nearest Rs. 50 crores of higher of Nifty / Sensex movement) but restricted to an upper limit of 500 crores.)

Securities moving out of Trade for Trade segment would be placed under 5 % price band until the next review for upward revision of Price bands.

The following dropping Criteria shall be applied on the securities eligible to move to Trade for Trade as per above Criteria:

• Market Capitalization is greater than Rs. 500 crores (For Mainboard) /Rs 250 crores (For SME) as on relevant date 

AND

• Institutional Holding is more than 20% 

OR

• Securities where company is paying dividend or issued bonus shares (and no dividend) in at least two out of last three years.

Exceptions:

The following securities shall be excluded from the Quarterly review process:

• Securities with Dynamic Price Bands.

OR

• Newly listed securities (IPO) and the securities which are made available for trading in Trade for Trade segment for the first 10 trading days with applicable price band, while keeping the price band open on the first day of trading as per SEBI circular bearing no SEBI/Cir/ISD/1/2010 dated September 2, 2010. 

OR

• Securities transferred to Trade for Trade segment as per immediate preceding fortnightly Trade to Trade Review Exercise will not be considered for review for shifting it back to Rolling Settlement.