What is Exit Route Scheme of BSE? Know eligibility and other details

Stock Market exchange platforms like BSE and NSE is used for trading and investing in shares and stocks of companies. Exit Route Scheme by BSE is for the benefit of small investors.

As per the information provided by BSE on its official website, the Exit Route Scheme has been devised by BSE and approved by SEBI. This Scheme provides an exit to the small investors holding physical shares of companies where deliveries have to be given compulsorily in demat form only.

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It was observed that small investors having holdings of few shares and of little value were not finding it economical to open a DP account and undergo the process of getting their physical holdings dematerialised. This Scheme allows them to sell their shares in physical form, BSE said.

Who is eligible to sell shares under this Scheme?

All small investors holding up to 500 shares of a company in physical form in respect of such companies where deliveries are to be given in demat form only are eligible to avail of this Scheme.

How many shares can be sold under this Scheme?

As per the information, an investor can sell a maximum of 500 shares. The BOLT system allows for entry of single order size of up to 500 shares. However, before placing a sell order under this Scheme('C' Group window), please ensure that:

1. Shares are registered in your name. No street shares are allowed to be delivered against sale in this scheme.

2. Shares are registered in your name prior to the date the scrip was mandated for compulsory demat deliveries. Exceptions to bonus shares and rights shares allotted by the companies subsequently has been provided.

3. Your Transfer Deed should not bear any other stamp other than that of your broker.

Also, it can be noted that you cannot square up the transactions done under the Exit Route Scheme as these trades are not netted either against trades in normal groups or against trades in "C" group itself. As such, the settlement of trades done under this Scheme takes place on trade-to-trade basis.

However, you can purchase the shares in normal or exit route window, but both sell and subsequent buy transactions will be treated separate transactions and settled accordingly.