BSE has decided to shift as many as 500 scrips from existing B1 group to B2 group and has also decided to transfer 179 stocks from B2 group to B1 group. This change will be effective from the new settlement begining January 22.

Incidentally, from the same day, BSE will also begin its new Borrowing and Lending of Securities Scheme (BLESS).

BSE vice-president Deena Mehta said the decision to review the `B' group was taken at the recently concluded meeting of BSE's governing board and based on criteria like average turnover, average market capitalisation and value traded, the decision to reshuffle the `B' was arrived at.

Ms Mehta said, normally the exchange reviews the performance of the listed companies based on the laid down criteria twice every year. But this exercise was not undertaken for the last two years, so this time while reviewing the bourse made an attempt to remove the backlog and that is the reason why this time the list of reviewed scrips looks bigger, she pointed out.

According to the list of the scrips which are to be shifted to B1 group from B2 group, the major change is that all the recently-listed media stocks will find a place in the more liquid and more volatile segment of the exchange.

Besides these, major stocks which are being shifted from B2 to B1 includes a majority of IT stocks. The media stocks which will be transferred to B1 group includes Balaji Telefilms, Cinevista Communications, GV Films, Jain Studios Ltd, Mukta Arts, Sahara Media Communication, Tips Industries and Top Cassettes Ltd.

According to marketmen, shifing of all media stocks and other active new economy stocks could be a part of very well thought-out process the exchange has undertaken. These stocks fit in well with the criteria set out by the authorities and their shifting to a more liquid group will impart them greater liquidity which will make them eligible for one more promotion.

However, Ms Mehta said that an expansion or reduction in the `A' group requires the formal consent of the market regulator Sebi.

The notable change among stocks which will be shifted to B2 group from B1 is that this 179 scrips have been moved from `B2' to `B1' group and 500 stocks have been shifted from `B1' to `B2', the BSE said in a statement in Mumbai on Saturday. The revision would come into effect from January 22 and for the scrips under the `no-delivery' period, shifting would be done after culmination of this period, it added.