What is Trade to Trade Segment?

Trade to trade segment

The shares that are traded in Trade to Trade segment, cannot be traded on an intraday basis. This T2T segment is formed via consultation with SEBI.

A trade to trade segment is where the shares can be rightfully traded or exchanged with a mandatory delivery basis. It means that this share can never be traded full-time. Every share that is sold Or purchased which is a part of the segment needs to be delivered after taking the whole amount. 

These Trade To Trade segment shares cannot be bought or sold on an intraday basis. In case you purchase a stock, it can only be sold once the T+2 agreement has been done.

In case you try to sell those shares on the same day, or even before the shares are shown in your Demat account, your order would be straightaway rejected. If you possess a trade to trade share in your holdings, and you sell it and then again purchase it, it wouldn’t be counted as an intraday trade. 

Below are some of the series on BSE & NSE that are trade to trade stocks:

  • Z group on BSE
  • T group on BSE
  • BZ group on NSE
  • BT group on NSE
  • T group on BSE
  • BE group on NSE

The shares of scrips in this trade segment are nicely available on NSE under the BE series. Here, BE means Book Entry. 

Criteria for getting stocks into the T2T segment

Shifting scrips or shares from/to the T2T segment is decided mutually by the stock exchanges after consulting with SEBI. This criterion is then listed on specific portals are reviewed accordingly. On the review date, the security should have been in the 5 percent price band for at least 22 trading days. If a share does not meet this criterion, it cannot be transferred to the T segment. 

Also Read: Is Intraday Trading Safe?

Can stock be taken out from the T segment and put as normal stocks again? 

Yes, definitely! You can take out stock from Trade to trade segment and put it into a normal trade again as per the guidelines stated by SEBI

Currently which stocks are in the T2T segment? 

Current trade securities in Trade to trade segment are:

  1. Motilal Oswal Financial Services
  2. Punjab Lloyd
  3. Altas Cucke
  4. Rolta and Melstar
  5. TreeHouse

Also Read: Difference between Equity Share and Preference Share

How To Sell Your T2T shares? 

Trade to trade shares can only be sold if they have been delivered to the Demat account, which is after two days of placing your order. Whether a scrip is trading to trade segment or not, is mutually decided by the stock exchanges after discussion with the SEBI authority. 

For how many days does a stock stays in T2T? 

New stocks are traded for the initial 10 days from the listing date. These shares would be showcased in your Demat account after 2 to 3 days. 

What is the “T” group in BSE? 

The T group in BSE means the securities which are settled on a trade to trade basis as an observation measure. Trading in these securities is done under the G group. 

This was everything about the trade to trade segment. Let us know your thoughts in the comment section below. 

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