Here’s What You Need To Know About T2T Stocks2 min read

February 11, 2022
3 things to know about T2T stocks paytm money blog

Here’s What You Need To Know About T2T Stocks2 min read

Trade to Trade stocks, or more popularly known as T2T stocks are those which need to be compulsorily delivered (T+1 settlement). This means that such stocks cannot be traded intraday or, BTST (Buy Today Sell Tomorrow). 

If you buy stocks in the T2T category today, you will be able to sell them only after the T+1 settlement happens. If you try selling these shares on the same day or before the shares are in the Demat account, your order will get rejected.

Why are a few stocks categorised as T2T? 

Exchanges in consultation with the market regulator, SEBI, monitor stocks which are highly volatile or have erratic price movements. To protect retail investors from getting caught in this volatility, they put stocks in the T2T segment and curb unnecessary speculation on such stocks. 

Stocks are shifted to the T2T segment by the exchanges on a fortnightly basis and they are shifted to or out of the segment based on quarterly assessments. 

Some of the key parameters used to transfer a stock to T2T segment are a combination of but not limited to price to earnings overvaluation, price variation, market capitalization. Also, stocks which are not available for trading in the F&O segment are considered for transferring into the T2T segment.

How to identify T2T stocks?

Exchanges categorise the scrips into different series, based on the type of instrument and settlement. 

The T2T stocks are categorised as a different series. The list of these stocks can be checked on the NSE and BSE websites. 

On the Paytm Money app, we nudge the users about T2T stocks on the company details screen as well as the order entry screen. This helps users make informed decisions and plan their trades well.

Things to remember while trading in T2T stocks

  • Compulsory delivery of such stocks. 
  • Intraday, BTST trades are not allowed.
  • Orders will be rejected if you try selling T2T holdings from your portfolio before they have completed their T+1 settlement.

So, do keep these points in mind if you’re interested in buying a T2T stock.

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for informational purposes and in no way an advice or recommendation. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532. NSE (90165), BSE(6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 10019.