Wednesday, June 11, 2014

What are Restricted trade segment stocks or T group stocks in BSE and NSE?



Question: What are T group stocks?  
Answer: Stocks which are traded for Delivery only and not allowed for intraday positions

Question: Why are they in the T group?
Answer: It is a preventive action by exchange to curb excessive speculation which brings large swings in stock price

Question: What will happen?
Answer: Speculation diminishes once in T group.

Question: How speculations occur?    
Answer: Operators raise the stock price in collusion with management.

Question: How speculation detected?
Answer: Circuit filters identify trading and notify abnormal activity

What are T group restrictions?
T category stocks have an upper and lower circuit limit of 5% based on previous day's close

What are other stock groups?              
A, B, S, and Z(assigned based on SEBI norms)
A group stocks        Classified based on  large market cap, float; stock maintain good records on dividend and  capital appreciation
B group         Stocks not in the A, S, T or Z group, consists of B1, B2
S group         Indonext group, Small market cap 3-30 crores
Z group         Non -compliant with the exchange's listing agreements
               

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