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What is trade-to-trade segment for stocks?

ET explains trade-to-trade settlement group for select stocks that are traded on the exchanges.

, ET Bureau|
Jun 25, 2019, 09.46 AM IST
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Current securities in T2T segment are : Atlas Cycle, Tree House, Punj Lloyd, Rolta and Melstar, according to Motilal Oswal Financial Services.
1. What is a T2T segment? What does it mean when a stock goes in T2T segment?

Trade-to-trade is a segment where shares can be traded only for compulsory delivery basis. It means trade-to-trade shares cannot be traded intraday. Each share purchased/sold which are parts of this segment need to be taken delivery by paying full amount. The settlement of scrips are available in this segment is done on a trade to trade basis and no netting off is allowed for the day. “In the ‘T2T’ segment, no speculative/intraday trading is allowed. Delivery of shares and payment of the consideration amount are mandatory and each trade has to result in a delivery even if you have bought and sold the shares during the same settlement cycle,” explains Chandan Taparia of Motilal Oswal Financial Services.

2. What is the criteria for stock going into the T2T segment?

Shifting scrip to/from T2T segment are decided jointly by the stock exchanges in consultation with Sebi. This criteria is listed on their respective websites and reviewed periodically. As on the review date, the security should have been in the 5 per cent price filter band for at least 22 trading days. If a scrip does not meet this criteria, it cannot be moved to the “T” segment.

3. Can a stock come out of T2T and be put in normal trade again?

Yes, a stock can come out of T2T and be in normal trade again as per the given guideline by the exchanges and Sebi.

4. Which stocks are in the T2T segment currently?

Current securities in T2T segment are : Atlas Cycle, Tree House, Punj Lloyd, Rolta and Melstar, according to Motilal Oswal Financial Services.
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