What is Trade to Trade Segment?

The shares traded in the Trade to Trade sector are not available for intraday trading. SEBI was consulted to create this T2T category.

A trade to trade section is where shares can be legally traded or swapped on a delivery basis. This indicates that this stock will never be able to be traded full-time. Every segment share that is sold or purchased must be delivered after the entire amount has been taken.

These Trade To Trade sector shares are not available for purchase or sale on a daily basis. If you buy a stock, you can only sell it after the T+2 agreement is completed.

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. 

The following are some of the trade-to-trade equities on the BSE and NSE:

  • On BSE, the Z group
  • On BSE, the T group
  • NSE’s BZ group
  • NSE: BT Group
  • On BSE, the T group
  • NSE’s BE group

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

After consulting with SEBI, stock exchanges decide whether or not to move scrips or shares from the T2T segment. This criterion is then listed on certain portals and scrutinized. The security should have been in the 5% price band for at least 22 trading days on the review date. A share cannot be transferred to the T segment if it does not meet this criterion.

Also Read: Is it safe to trade intraday?

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? 

The following are the current trade securities in the Trade to Trade segment:

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

Also Read: What is the difference between equity and preference shares?

How To Sell Your T2T shares? 

Trade-to-trade shares can only be sold after they’ve been delivered to your Demat account, which takes two days after you place your transaction. The stock exchanges decide whether a scrip trades in the trade segment or not after consulting with the SEBI authority.

For how many days does a stock stays in T2T? 

New stocks are traded for the first ten days after they are listed. After 2 to 3 days, these shares will appear in your Demat account.

What is the “T” group in BSE? 

The T group on the BSE refers to securities that are settled as an observation measure on a trade-by-trade basis. The G group is in charge of trading these securities.

This was the entire segment of trade to trade. Please share your opinions in the section below.


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