21 Stocks Shift to Trade-for-Trade Segment Starting May 3

The Indian stock market is on a roll, continuing its upward momentum from Monday. As of Tuesday, the Sensex is approaching a significant milestone, trading close to the 75,000 mark, while the Nifty has already crossed 22,700. This surge in the major indices reflects growing investor confidence, with buoyancy spilling over into the broader markets. The Nifty Midcap index is up 0.43%, and the Smallcap index has edged higher by 0.11%.

Investors’ increased risk appetite is evident as broader market indices hit new all-time highs day after day. With this exuberance in the air, the Bombay Stock Exchange (BSE) has made a significant move to ensure market stability and protect participants’ interests. Let’s dive into the latest development related to the 21-stocks. 

Shift from Rolling to Trade-for-Trade Segment: Important Update for Market Participants

BSE’s key development that the market participants should be aware of. Starting May 3, 2024, 21 stocks will move from the Rolling segment to the Trade-for-Trade (T2T) segment. In the T2T segment, trades are settled on a trade-by-trade basis, with no netting of positions allowed.

Here’s a list of securities that will transition from the Rolling segment to the Trade-for-Trade segment:

Trade-for-Trade Settlements with 100% VaR Margin

Traders should exercise caution when dealing with these securities, as settlements will be done on a trade-to-trade basis, and a Value at Risk (VaR) margin of 100% will be applied. Ensure that you understand the implications of this change to avoid any unexpected outcomes in your trading activities.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.