Description

BSE announces surveillance-based transfer of scrips to/from Trade-to-Trade (T/XT/MT/TS) groups effective May 19, 2026, with 100% VaR margin and 5% price band applicable.

Summary

BSE has announced a revision of scrips in the Trade-to-Trade (T/XT/MT/TS) segment as a preventive surveillance measure under Notice No. 20260514-45. Effective May 19, 2026, certain scrips will be moved into or continue in the Trade-to-Trade group, while others will be shifted back to their original groups. A 100% VaR margin and a price band of 5% or lower will apply to scrips in the T/XT/MT/TS group.

Key Points

  • Annexure I Part A scrips will be transferred to T/XT/MT/TS Group effective May 19, 2026
  • Annexure I Part B scrips will continue to remain in T/XT/MT/TS Group effective May 19, 2026
  • Annexure II scrips are eligible for T/XT/MT/TS transfer but remain in their existing P, Y, Z, ZP, or ZY groups as they are already settled on a trade-to-trade basis
  • Annexure III scrips currently in T/XT/MT/TS Group will be shifted back to their original groups from May 19, 2026
  • A VaR Margin of 100% will be levied on all T/XT/MT/TS group scrips per Exchange Notice No. 20050805-12
  • A price band of 5% or lower applies to all T/XT/MT/TS scrips and will continue even after scrips are shifted back
  • No netting off of positions is allowed for trade-to-trade settled scrips
  • Shortlisting of securities is based on XBRL submissions by listed companies

Regulatory Changes

This action is taken under the framework established by Exchange Notice No. 20161219-27 (December 19, 2016) and No. 20230925-51 (September 25, 2023), which lay down the procedure for moving scrips in and out of the Trade-to-Trade segment. The measure is a temporary surveillance action and will be reviewed periodically based on market conditions.

Compliance Requirements

  • Trading Members must take adequate precautions while trading in scrips transferred to T/XT/MT/TS groups, as settlement will be strictly on a trade-to-trade basis with no netting allowed
  • Members must ensure compliance with the 100% VaR margin requirement for affected scrips
  • Members should be aware that the 5% price band applies to all T/XT/MT/TS scrips and will continue even post-reversal until the next price band review
  • For clarifications, members may contact BSE Surveillance at bse.surv@bseindia.com

Important Dates

  • Notice Date: May 14, 2026
  • Effective Date: May 19, 2026 — transfers into T/XT/MT/TS group and reversals back to original groups both take effect

Impact Assessment

This is a high-impact surveillance action affecting multiple equity scrips across BSE. Scrips moved into Trade-to-Trade settlement lose the benefit of intraday netting, significantly increasing the capital requirement for trading. The mandatory 100% VaR margin further raises the cost of taking positions. Scrips shifted back to their original groups will continue to face a 5% price band restriction pending the next review, limiting price discovery. The measure is explicitly stated to be temporary and not an adverse regulatory action against the affected companies. Traders and investors holding or considering positions in Annexure I and III scrips should review settlement obligations and margin requirements before May 19, 2026.

Impact Justification

Directly affects trading and settlement mechanics for multiple scrips; imposes 100% VaR margin and 5% price band restrictions, preventing netting of positions and significantly impacting liquidity and trading strategy for affected securities effective May 19, 2026.