About Trade-to-Trade (T2T) Segment:
- T2T stocks or Trade-to-Trade stock means stocks that must be delivered in order to be traded (T+2 settlement).
- This implies that such equities cannot be traded intraday or, in the case of Buy Today Sell Tomorrow, on a daily basis.
- This means if you acquire T2T stocks today, you won’t be able to sell them until the settlement takes place.
- Your order will be refused if you try to sell these shares the same day or before they are in the Demat account.
- Stocks are put under the T2T segment by the exchanges based on criteria such as their price-earnings ratio, price variations, market capitalisation, etc.
- Stocks that are very volatile or have irregular price movements are monitored by exchanges in cooperation with the market regulator, SEBI.
- They put stocks in the T2T section to shield regular investors from being caught up in the volatility and to limit unwarranted speculation on such equities.
- On a bi-weekly basis, exchanges relocate stocks to the T2T section, and they are shifted in and out of the segment depending on quarterly evaluations.
- Also evaluated for transfer to the T2T sector are stocks that are not available for trade in the Futures & Options section.
- How to identify stocks in the T2T segment? Stocks in the T2T segment can be identified by changes in their scrip names:
- National Stock Exchange (NSE): The addition of the word "BE" to the scrip name. For example, "ADANIPOWER" becomes "ADANIPOWER BE" in the T2T segment and reverts to "ADANIPOWER" after normal trading is allowed.
- Bombay Stock Exchange (BSE): The addition of the letter "T" to the scrip name. For instance, "ADANIPOWER" changes to "ADANIPOWER T" when moved to the T2T segment.
