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T-group shares

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What are T-Group shares?

The "T" group represents securities which are settled on a trade-to-trade basis as a surveillance measure.

When a stock is in T-group, intraday trading (i.e speculation) is not allowed.

Only buying or only selling (but not both during the same day) is allowed.

This means that only investors will be able to either buy / sell the shares of the company.

If a stock still hits upper or lower circuits consecutively for few fays, there is a high chance that it will be moved to T-group.

As said earlier, this is done as a surveillance measure.

Company shares in this segment are like caged birds.

Because of the limitations involved, there will not be much of volumes in the stock.

It is better to avoid such shares because we cannot know what checks or surveillance is being done by the stock exchanges.

  • Rule #31: Avoid investing in T-group company shares till they are moved to its parent group

Other similar term used for T-group is XT-group (T-group companies that are listed only on BSE) and MT-group (T-group shares for SME companies).

What if I trade in T-group stocks?

In most cases, your stock broker will not allow to trade the stock that is moved to T-group. However, the onus of ensuring he is not tading in T-group stocks lies with the trader / investor.

Hefty penalty will be levied when trading is done in T-group.

Stock exchanges in consultation with SEBI and reviewed stocks in Trade to Trade segment (T-group or XT-group of stocks) periodically. Now, a new revised set of guidelines are put in place. Henceforth, the process of identifying the securities moving to Trade to Trade will be done on a fortnightly basis while securities moving to/from Trade to Trade will be done on a quarterly basis.

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