Differnt Series of NSE

#5
Trade-to-Trade

If a scrip is shifted for settlement on Trade-to-Trade basis, selling/ buying of shares in that scrip results into giving/ taking delivery of shares at the gross level and no intra day netting off/ square off facility is permitted. The scrips which form part of the 'Z group' are compulsorily settled on a trade-to-trade basis.

As a part of Surveillance measure the Exchange transfers various scrips for settlement on a Trade-to-Trade basis. The said action is reviewed at periodic intervels (Fortnightly & Quarterly) based on market capitalization, price earnings ratio, price variation vis--vis the market movement, volatility, volume variation, client concentration and number of non promoter shareholders etc. The criteria for shifting scrips to/fro for settlement on T2T basis are decided jointly by the stock exchanges in consultation with SEBI and reviewed periodically. Scrips on which derivatives products are available or scrips included in indices on which derivatives products are available are not considered for transfer to Trade for Trade segment.


The Fortnightly and Quarterly review calendar for the year 2012 is attached for reference.

In order to bring greater transparency and to eliminate various allegations about manner of shifting of scrips to/from the T2T segment criteria for shifting scrips to/fro Trade for Trade segment is given below :

Fortnightly Review Criteria

The detailed fortnightly review criteria for shifting of scrip to T2T segment is given below. The securities satisfying all the Criteria I, II and III shall be transferred to Trade for Trade segment.

Criteria I

PE Multiple Criteria


If SENSEX PE Multiple on the relevant date is in the range of 15-20 then scrips having PE greater than 30 will be considered.

If SENSEX PE Multiple on the relevant date is greater than 20 or less than 15 than difference will be rounded off to nearest number and same will be added subtracted from 30. However, minimum base of PE Multiple shall be 25. Accordingly scrips having PE greater than this bench mark will be considered.
All scrips having negative PE shall be considered. AND
Criteria II

Price Variation Criteria


All scrips where the price variation is in positive direction as below will be considered:

20% plus Sensex variation (Sensex Variation will be calculated on close to close basis). In case SENSEX variation is negative it shall be 20% minus SENSEX variation as Price Variation Benchmark, subject to a minimum of 10%. AND
Criteria III

Market Capitalization


Market Capitalization of Rs.500 crore or lower as per last Quarterly review.
 

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