What is T2T stock?

 Introduction

A list of firms that have been relocated to the Trade-to-Trade Segment can be found on the BSE or NSE website's notices section.

Trade-to-Trade segment

Trade-to-trade segment is a market category in which stocks can just be exchanged for mandatory delivery. It means that intraday trading is not possible.

T2T Rule

The settlement of stocks offered in this section is done on a trade-by-trade basis, with no day-to-day netting off authorized. Intraday trading is not permitted in the ‘T2T' segment.

T2T Example

DCM Ltd, PNB Housing Finance Ltd, 7NR Retail Ltd and Suzlon Energy Ltd are some stocks which are added in the list on 07 june 2021 as per bse list.

Laws for T2T

Shifting a share to or from the T2T segment is chosen jointly by the stock exchanges and Sebi. This assessment is published on their official portals

Criteria 1

P/E overvaluation is the first criterion for moving to the T2T segment. The trailing EPS from the previous 4 quarters will be used to calculate the P/E.

Criteria 2

If the share 's price variance is roughly 25% greater than the Sensex or the specific sectoral index to which it is benchmarked, the share will be evaluated for T2T.

Criteria 3

If the market capitalization decreases below Rs.500 crore, the company will be moved to the Trade-to-Trade Segment.

During T2T

The government of India has put some rules on government employees for their own good and as well as keeping the general public in their mind.

List of Trade-to-Trade

The list is available on the websites of SEBI, NSE(National stock exchange) and BSE.