Published on Tuesday, November 19, 2019 by Chittorgarh.com Team
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NSE and BSE categorize stocks into groups to protect the interest of investors, prevent stock market scams and to ensure transparency and authentic trading. NSE calls the stock categories as Series and BSE call it Groups (A, B, T, and Z).
This categorization is done on certain qualitative and quantitative parameters like P/E overvaluation, high price variation and substantial fall in the market cap. The high-level definition of each of these BSE groups is as below:
- BSE A group stocks: Stocks that are actively traded on the exchange.
- BSE Z groups stocks: Stocks that are blacklisted for violation of exchange rules.
- BSE T group stocks: Stocks that are in the Trade to Trade segment.
- BSE B group stocks: Stocks that dont fall into any other groups.
NSE Series are classified as below:
- BE Series: Stocks that are in Trade for Trade segment. BE is for Book Entry.
- BZ Series: Stocks that are blacklisted for violation of exchange rules.
- EQ Series: Stocks for which intraday is permitted along with delivery. EQ is for Equity.
T Group Shares Means
T group shares are securities that are put into Trade to Trade segment by the BSE. These stocks are not allowed for intraday trading. The T2T stocks can only be delivery based i.e. the buyer has to take the delivery of these shares.
T Group Shares are also known as:
- Trade to trade stocks
- T to T shares
- T2T script
- Trade-to-trade segment
- T group securities
T Group Shares Rules
The following rules are applicable for BSE stocks in the trade to trade segment:
- Newly listed stocks on BSE and stocks showing abnormal volatility are put in T category.
- Stocks with P/E overvaluation, more than 25% price variation than Sensex and fall in market cap by Rs 500 are moved into the T2T group.
- Stocks that are not available in the derivatives segment are put into the T category.
- The trader must take delivery of the stocks, even if the buying and selling happened in the same settlement cycle.
- Traders who dont take deliver have to pay penalties and their shares will go into auction.
- A VaR margin of 100% applies to these shares.
- BTST (Buy Today, Sell Tomorrow) and STBT (Sell today and Buy Tomorrow) facility are not allowed.
- Stocks moved into the T group can be moved into the normal segment, once its volatility and other parameters improved.
For more detail about how stocks are moved in and out of the trade to trade segment, check BSE Price Monitoring Cell.
Trade to Trade Segment list at BSE
The T Group Stocks List BSE can be downloaded using the following steps:
- Visit the BSE websites scrip list page.
- Select search criteria as below:
Segment = Equity
Status = Active
Group = T
- Click the Submit button
Trade to Trade Segment List NSE (BE Series)
The T Group Stocks List NSE can be downloaded using the following steps. This list includes real-time live trade to trade stocks list.
- Visit the NSE website security information page.
- Download Securities available for Equity segment (.csv)
- Filter data for SERIES BE.
T Group Share Circuit Limit (Price Bands)
The trade-to-trade stocks are traded in the 5% circuit either way. This means that the price of the stocks cannot move up or down beyond 5% of its last day price.
For example, if the closing price of a T2T stock was Rs 100 yesterday, today it cannot trade beyond the range of Rs 105-95. This is done to control the volatility of the stock.
Frequently Asked Questions
1. What are T group shares?
Stock exchanges in India classify stocks based on their risk profile. Exchanges put certain limitations one each category.
Several company shares are put into the trade to trade segment as they have a relatively high risk for investors. BSE classifies them in the T group of stocks while NSE classifies them as BE series of shares.
T group of shares are actively traded at stock exchanges like other shares with certain restrictions like:
- They have a 5% circuit filter. Their price cannot move beyond 5% on either side.
- They are restricted to trade in intraday. Only delivery trading is permitted.
- Buy Today, Sell Tomorrow is not permitted on these shares.
2. What does NSE call to trade to trade group shares?
NSE categorizes trade to trade stocks in BE series of shares. BSE categorizes them as a T group of securities.
3. Can I trade in T group Securities?
Yes, T group of securities can be traded at stock exchanges with certain restrictions including:
In BSE, the T group shares are also called as trade to trade scrips or T2T stocks or T-to-T shares.
At NSE, the securities under trade to trade segments are called the BZ series of securities.
4. Why are stocks put in the T group?
Stock exchanges evaluate stocks and categorize them into groups based on certain qualitative and quantitative parameters. This is done to protect the interest of the investors and prevent illegal trading practices like price manipulation. The stocks that are put into the T group are shares that have an abnormal price variation and a sudden fall in market cap. BSE puts these stocks into surveillance mode to check if theres any price manipulation or any other illegal trading practice involved. The stock is moved into the normal segment as soon as its performance improves.
5. What is a T group in the stock market?
Stock exchanges like BSE and NSE evaluate and categorize stocks to protect the interest of the investors. This is done to prevent price manipulation and other illegal practices in trading.
T group stocks are those stocks that have shown high price variation or a significant fall in their market cap. These stocks then trade under T2T or trade to trade rules.
The shares in trade to trade segment have a range of limitations including:
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