Shifting of stocks to and from the Trade to Trade (T2T) list

The trade to trade or T2T segment is that segment of the stock markets that is marked for compulsory delivery. This segment does not permit any intraday trading, either on the long side or on the short side. Any purchase or sale of such T2T stocks has to mandatorily happen only for delivery. To avoid too much of speculation in certain stocks, or when a stock is fresh listed in the stock market, the exchange may take a decision to put the stock into the T2T segment. This reduces the quantum of speculation on the stock since intraday trades are not possible in such stocks.

Shift to and from T2T effective 28th February 2023

As per the circular issued by the NSE on 23rd February 2023, the exchange has identified and finalized 3 lists as under.

1. A list of stocks that will be shifting from the rolling settlement system (series: EQ) into the Trade for Trade or T2T segment (series: BE) effective from 28th February 2023.
    

2. A list of stocks that will be shifting back from the Trade for Trade or T2T segment (series: BE) into the rolling settlement system (series: EQ) effective from 28th February 2023.
    

3. A list of stocks that will continue to trade in the Trade for Trade or T2T segment (series: BE / BZ) with a price band of 5% or lower, till further notice.

How are stocks review for T2T shifting?

Firstly, it must be remembered that the stocks in Trade for Trade or T2T segment are made available for trading under BE series. The settlement of scrips available in this segment is done on a trade for trade basis and no netting off is allowed. The criteria for shifting scrips into or out of the T2T segment are decided jointly by the Stock Exchanges in consultation with SEBI and reviewed periodically. Typically, as per the extant norms, the process of identifying the securities moving to Trade for Trade or T2T segment is done on a fortnightly basis while securities moving from Trade to Trade is done on a quarterly basis. This review is applicable to all securities irrespective of Price Bands.

There are 3 criteria in the quarterly review to shift stocks to the T2T segment or back. These are Price / Earnings or PE multiple, Price variation and Market capitalization. Here are the specific criteria for T2T shifting. All the 3 conditions below have to be satisfied.

• If the Price Earnings Multiple (P/E) less than 0 or greater than or equal to upper limit, subject to a minimum of 25 as on the relevant date, it is a criteria for shifting to T2T.
   

• If the fortnightly Price Variation is greater than or equal to Sectoral Index* or Nifty 500 Index Fortnightly Variation plus 25% subject to a minimum of 10%.
   

• If the market capitalization of the stock (outstanding number of shares X current market price of the stock) is less than or equal to Rs. 500 crores as on relevant date.

There are some exceptions to the above rule like stock with dynamic price bands and stocks transferred out of T2T to rolling settlements in quarterly review (in immediate fortnight).

Transfer of stocks from Rolling settlement to T2T segment

The following stocks are being shifted from the rolling settlement (EQ) to the trade to trade or T2T segment (BE) effective from 28th February 2023.

In all the above stocks, effective from 28th February 2023, intraday trades of any sort will be barred and only specific delivery trades on the buy side or sell side will be permitted.

Transfer of stocks from T2T segment back to Rolling settlement

The following stocks are being shifted back from the T2T segment (BE) to the rolling settlement (EQ) effective from 28th February 2023 at the same price band.

In all the above stocks, effective from 28th February 2023, intraday trades will be once again permitted but at the existing bands only. The restriction of only delivery will stand removed effective immediately.

Apart from the above two lists, there are a total of 109 stocks that are being retained in the T2T list (BE) with applicable price bands of 5% or 2%. Investors can check detailed list of such companies on the NSE website under circulars section or at the link below

https://archives.nseindia.com/content/circulars/SURV55739.zip

The above file once downloaded has to be extracted using a WINRAR or WINZIN utility to access the files.