{"id":11633,"date":"2022-08-03T13:25:00","date_gmt":"2022-08-03T07:55:00","guid":{"rendered":"https:\/\/blogs.univest.in\/?p=11633"},"modified":"2025-06-05T17:21:47","modified_gmt":"2025-06-05T11:51:47","slug":"what-are-t2t-stocks-how-to-trade-in-t2t-stocks","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/what-are-t2t-stocks-how-to-trade-in-t2t-stocks\/","title":{"rendered":"What are T2T stocks? How to trade in T2T stocks?"},"content":{"rendered":"<p>The SEBI regulates numerous areas of the equities market (also known as the stock market), including rolling settlement, institutional segment, qualified foreign investor segment, and so on. Trade to Trade Segment is one of these many distinct segments.<\/p>\n<p>Before we get into what makes the Trade to Trade sector so special, let&#8217;s first define what it is and why it was created.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/what-are-t2t-stocks-how-to-trade-in-t2t-stocks\/#What_exactly_is_the_Trade_to_Trade_T2T_Stock_Segment\" title=\"What exactly is the Trade to Trade (T2T) Stock Segment?\">What exactly is the Trade to Trade (T2T) Stock Segment?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/what-are-t2t-stocks-how-to-trade-in-t2t-stocks\/#Criteria_for_Transferring_Shares_in_the_Trade_Stock_Segment_T2T\" title=\"Criteria for Transferring Shares in the Trade Stock Segment (T2T)\">Criteria for Transferring Shares in the Trade Stock Segment (T2T)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/what-are-t2t-stocks-how-to-trade-in-t2t-stocks\/#How_frequently_are_stocks_transferred_to_the_T2T_segment\" title=\"How frequently are stocks transferred to the T2T segment?\">How frequently are stocks transferred to the T2T segment?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/what-are-t2t-stocks-how-to-trade-in-t2t-stocks\/#How_to_Trade_the_T2T_shares_in_stock_market\" title=\"How to Trade the T2T shares in stock market?\">How to Trade the T2T shares in stock market?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/what-are-t2t-stocks-how-to-trade-in-t2t-stocks\/#T2T_Transaction_Example\" title=\"T2T Transaction Example\">T2T Transaction Example<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/what-are-t2t-stocks-how-to-trade-in-t2t-stocks\/#About_the_Author\" title=\"About the Author\">About the Author<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_exactly_is_the_Trade_to_Trade_T2T_Stock_Segment\"><\/span><strong>What exactly is the Trade to Trade (T2T) Stock Segment?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Shares that are highly speculative and susceptible to price manipulation are transferred to the T2T or Trade to Trade section. This section does not enable intraday or BTST (Buy Today &#8211; Sell Tomorrow) &#8211; trading. When trading in this category, delivery of the shares is mandatory. The shares are delivered to the investors account via the T+2 delivery mechanism. This is a section created to limit speculation and preserve a market free of volatile price changes.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Criteria_for_Transferring_Shares_in_the_Trade_Stock_Segment_T2T\"><\/span>Criteria for Transferring Shares in the Trade Stock Segment (T2T)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Only shares that cannot be traded in the F&amp;O or derivatives segments can be transferred to the T2T section. As a result, derivatives shares can never be moved to the T2T segment.<\/p>\n<p>Shifting of shares to the T2T segment is normally done on a fortnightly basis, while the <a href=\"https:\/\/univest.in\/what-is-nse-and-bse-in-stock-market\/\">NSE and BSE<\/a> assess the shares for shifting to and from the T2T sector on a quarterly basis based on three particular criteria. And each of these factors is employed on a case-by-case basis.<\/p>\n<p><strong>1.\u00a0\u00a0\u00a0 P\/E Overvaluation<\/strong><\/p>\n<p>Assuming the Nifty&#8217;s P\/E multiple is about 20-25, and the stock under consideration has a P\/E multiple of 50, it will be regarded as overvalued on the NSE. Depending on the other two factors, such expensive stocks may be reclassified as T2T.<\/p>\n<p><strong>2.\u00a0\u00a0\u00a0 Market Capitalization<\/strong><\/p>\n<p>If a <a href=\"https:\/\/univest.in\/what-is-book-value-per-share-in-the-stock-market\/\">stock&#8217;s market<\/a> capitalization falls below 500 crores, it may be considered for inclusion in the T2T category. Allowing intraday trading on such shares, with the exception of new IPOs, might result in significant volatility in the stock, as well as capital erosion and price manipulation.<\/p>\n<p><strong>3.\u00a0\u00a0\u00a0 Price Variation<\/strong><\/p>\n<p>If the price variation of a certain stock is roughly 25% greater than the price variation of the Sensex or the Benchmark index of the particular stock, it will be considered for transfer to the T2T sector. The variation must be in the Sensex direction. As on the review date, the security should have been in the 5% price filter band for at least 22 trading days. If a stock does not meet these criterion, it cannot be moved to the \u201cT\u201d segment.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_frequently_are_stocks_transferred_to_the_T2T_segment\"><\/span>How frequently are stocks transferred to the T2T segment?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>On a fortnightly basis, shares are transferred to the T2T section. Every quarter, the trade decides to shift to and from the T2T segment.<\/p>\n<p>When a stock is moved to the T2T sector, the price filter bands are locked at 5% for at least 22 trading days. This ensures the stability of these equities. It cannot be shifted to the &#8216;T2T&#8217; segment if it does not meet the criteria.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_to_Trade_the_T2T_shares_in_stock_market\"><\/span>How to Trade the T2T shares in stock market?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>An investor can trade in the<a href=\"https:\/\/blog.finology.in\/stock-market\/t2t-stocks\" rel=\"nofollow noopener\" target=\"_blank\"> T2T<\/a> section by following the instructions below:<\/p>\n<p>If the investor wants to buy shares, he must pay the whole price and accept the trade on delivery.<\/p>\n<p>It is vital to note that before selling shares, the investor must ensure that he hasdelivery in your Demat account; otherwise, he will be unable to sell shares.<\/p>\n<p>After the shares are sold, no netting off or intraday trading is permitted in this segment. As a result, it is critical to guarantee that the investor has delivery in their Demat account and can provide it on the T+2 date (Trade day + 2 days). Without T+2, the shares will be auctioned directly, resulting in significant losses for investors in addition to the broker being penalised.<\/p>\n<p>Payment of the sum and delivery of the shares are required in this section, and each trade must result in delivery at the conclusion. There is no scope for covering an investor&#8217;s position, nor for Buy Today and Sell Tomorrow (BTST) or Sell Today and Buy Tomorrow (STBT).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"T2T_Transaction_Example\"><\/span>T2T Transaction Example<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Assume, in a typical stock market scenario, a trader buys 5000 shares of ABC Company for Rs 50 and sells them the same day at Rs 51 each. Based on intraday trading, the trader made a profit of Rs. 5000.<\/p>\n<p>If, on the other hand, ABC Company&#8217;s stock was in the &#8216;T2T&#8217; Segment, the trader would first pay Rs 2,50,000 to the broker to obtain the delivery, and he would then be unable to sell it until he received the delivery of shares in his Demat account. He can only sell such shares after he receives the delivery.<\/p>\n<p>The NSE and BSE websites both have a list of stocks that have been shifted to the T2T section. Before dealing in such companies, many trading platforms give a disclaimer. So be cautious while purchasing a T2T stock so that you do not get sucked in and incur unnecessary losses and financial injury.<\/p>\n<p>T2T is a difficult segment, but it offers its own set of benefits. By trading in the T2T segment, the investor can avoid price fluctuations and compete speculations.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"About_the_Author\"><\/span>About the Author<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Ketan Sonalkar (SEBI Rgn No INA000011255)<\/p>\n<p>Ketan Sonalkar is a certified <a href=\"https:\/\/univest.in\/pro\"><strong>SEBI registered investment advisor<\/strong><\/a> and head of research at <a href=\"https:\/\/univest.in\/\">Univest<\/a>. He is one of the finest financial trainers, with a track record of having trained more than 2000 people in offline and online models. He serves as a consultant advisor to leading fintech and financial data firms. He has over 15 years of working experience in the finance field. He runs Advisory Services for Direct Equities and Personal Finance Transformation.<\/p>\n<p><em>Note \u2013 This channel is for educational and training purpose only &amp; any stock mentioned here should not be taken as a tip\/recommendation\/advice<\/em><\/p>\n<p><em>You may also like: <strong><a href=\"https:\/\/univest.in\/icici-bank-reported-better-than-expected-q1fy23-results\/\">ICICI Bank Q1FY23 results<\/a><\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SEBI regulates numerous areas of the equities market (also known as the stock market), including rolling settlement, institutional segment, qualified foreign investor segment, and so on. Trade to Trade Segment is one of these many distinct segments. Before we get into what makes the Trade to Trade sector so special, let&#8217;s first define what<\/p>\n","protected":false},"author":6,"featured_media":26908,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[336,335,338,339,333,334,337,340],"class_list":["post-11633","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market","tag-demat-delivery-pending-t2t-stock","tag-list-of-t2t-shares-on-nse-2021","tag-t2t-share","tag-t2t-stock-meaning","tag-t2t-stocks","tag-t2t-stocks-list","tag-t2t-stocks-list-nse","tag-t2t-transaction"],"metadata":{"_schema_ref":["11166"],"_edit_lock":["1749124955:25"],"_edit_last":["25"],"_nectar_gallery_slider":["off"],"_nectar_quote_author":[""],"_nectar_quote":[""],"_nectar_link":[""],"_nectar_video_m4v":[""],"_nectar_video_ogv":[""],"_nectar_video_poster":[""],"_nectar_video_embed":[""],"_nectar_audio_mp3":[""],"_nectar_audio_ogg":[""],"_post_item_masonry_sizing":["regular"],"_nectar_header_bg":[""],"_nectar_header_parallax":["off"],"_nectar_header_bg_height":[""],"_nectar_page_header_bg_alignment":["top"],"_nectar_header_bg_color":[""],"_nectar_header_font_color":[""],"_wpb_vc_js_status":["false"],"_yoast_wpseo_content_score":["30"],"_yoast_wpseo_estimated-reading-time-minutes":["4"],"_yoast_wpseo_primary_category":["24"],"_yoast_wpseo_focuskw":["T2T stocks"],"_yoast_wpseo_title":["What are T2T stocks? How to trade in T2T stocks?"],"_yoast_wpseo_metadesc":["Shares that are highly speculative and susceptible to price manipulation are transferred to the T2T or Trade to Trade section."],"_yoast_wpseo_linkdex":["69"],"nectar_blog_post_view_count":["460"],"_thumbnail_id":["26908"],"_schema_json":["a:13:{s:8:\"@context\";s:19:\"https:\/\/schema.org\/\";s:5:\"@type\";s:11:\"BlogPosting\";s:16:\"mainEntityOfPage\";a:2:{s:5:\"@type\";s:7:\"WebPage\";s:3:\"@id\";s:66:\"https:\/\/univest.in\/what-are-t2t-stocks-how-to-trade-in-t2t-stocks\/\";}s:3:\"url\";s:66:\"https:\/\/univest.in\/what-are-t2t-stocks-how-to-trade-in-t2t-stocks\/\";s:8:\"headline\";s:48:\"What are T2T stocks? How to trade in T2T stocks?\";s:13:\"datePublished\";s:25:\"2022-08-03T13:25:00+05:30\";s:12:\"dateModified\";s:25:\"2022-08-03T13:33:34+05:30\";s:9:\"publisher\";a:4:{s:5:\"@type\";s:12:\"Organization\";s:3:\"@id\";s:32:\"https:\/\/univest.in\/#organization\";s:4:\"name\";s:7:\"Univest\";s:4:\"logo\";a:4:{s:5:\"@type\";s:11:\"ImageObject\";s:3:\"url\";s:62:\"https:\/\/univest.in\/wp-content\/uploads\/2022\/06\/Univest-Logo.png\";s:5:\"width\";i:600;s:6:\"height\";i:60;}}s:5:\"image\";a:4:{s:5:\"@type\";s:11:\"ImageObject\";s:3:\"url\";s:68:\"https:\/\/univest.in\/wp-content\/uploads\/2022\/07\/Untitled-design-53.jpg\";s:5:\"width\";i:1280;s:6:\"height\";i:720;}s:14:\"articleSection\";s:6:\"Market\";s:8:\"keywords\";s:161:\"demat delivery pending t2t stock, list of t2t shares on nse 2021, t2t share, t2t stock meaning, t2t stocks, t2t stocks list, t2t stocks list nse, t2t transaction\";s:11:\"description\";s:309:\"The SEBI regulates numerous areas of the equities market (also known as the stock market), including rolling settlement, institutional segment, qualified foreign investor segment, and so on. Trade to Trade Segment is one of these many distinct segments. Before we get into what makes the Trade to Trade sector\";s:6:\"author\";a:4:{s:5:\"@type\";s:6:\"Person\";s:4:\"name\";s:14:\"Avneet Dhamija\";s:3:\"url\";s:33:\"https:\/\/univest.in\/author\/avneet\/\";s:5:\"image\";a:4:{s:5:\"@type\";s:11:\"ImageObject\";s:3:\"url\";s:81:\"https:\/\/secure.gravatar.com\/avatar\/4b244dec68772ad327eead8f5575ec8f?s=96&d=mm&r=g\";s:6:\"height\";i:96;s:5:\"width\";i:96;}}}"],"_schema_json_timestamp":["1661744576"],"_yoast_wpseo_wordproof_timestamp":[""],"rank_math_primary_category":["24"],"rank_math_title":["What are T2T stocks? 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