Description

Allcargo Logistics Limited will move to Trade for Trade segment (Series: BE) with call auction in pre-open session effective November 12, 2025.

Summary

National Stock Exchange of India has announced that Allcargo Logistics Limited (ALLCARGO) will be moved to the Trade for Trade settlement segment (Series: BE) effective November 12, 2025. This change is being implemented pursuant to a Scheme of Arrangement. The stock will also be included in the call auction during the pre-open session as per SEBI guidelines.

Key Points

  • Allcargo Logistics Limited (Symbol: ALLCARGO) to move to Trade for Trade segment
  • New series designation: BE
  • Effective date: November 12, 2025 (Wednesday)
  • Call auction in pre-open session will apply
  • Change implemented pursuant to Scheme of Arrangement
  • Governed by SEBI Circular No. CIR/MRD/DP/02/2012 dated January 20, 2012

Regulatory Changes

The stock will transition from regular rolling settlement to Trade for Trade (T2T) settlement mechanism. In Trade for Trade segment:

  • All trades must result in compulsory delivery
  • No intraday squaring off of positions allowed
  • Buyers must have full funds upfront
  • Sellers must have shares in demat account before selling
  • Settlement follows T+2 cycle with mandatory delivery

The stock will participate in call auction during pre-open session (9:00 AM to 9:08 AM) as per SEBI regulations.

Compliance Requirements

For Brokers and Trading Members:

  • Ensure adequate client awareness about T2T restrictions
  • Verify availability of funds with buyers before order placement
  • Verify availability of shares in demat with sellers before order placement
  • Update risk management systems for T2T settlement requirements

For Investors:

  • Maintain sufficient funds in trading account before buying
  • Ensure shares are in demat account before selling
  • No intraday trading permitted
  • All purchases will result in delivery and payment
  • All sales will result in delivery of shares

Important Dates

  • November 6, 2025: Circular issued
  • November 12, 2025: Trade for Trade segment effective date for ALLCARGO

Impact Assessment

Market Impact:

  • Significant reduction in trading liquidity expected
  • Elimination of intraday/speculative trading activity
  • Potential increase in bid-ask spreads due to reduced liquidity
  • Trading volumes likely to decline substantially

Investor Impact:

  • Only delivery-based trading permitted
  • Higher capital requirement as full payment needed upfront
  • Reduced flexibility for active traders
  • Day traders and short-term traders effectively excluded
  • Focus shifts to long-term investors and delivery-based participants

Operational Impact:

  • Brokers need to implement additional pre-trade checks
  • Increased surveillance and monitoring requirements
  • Price discovery through call auction mechanism during pre-open
  • Enhanced settlement discipline required from all participants

This measure is typically implemented to curb excessive speculation, ensure orderly trading, or facilitate corporate actions such as the mentioned Scheme of Arrangement.

Impact Justification

Movement to Trade for Trade segment significantly restricts trading by eliminating intraday liquidity and requiring full upfront payment and delivery, directly impacting all traders and investors in ALLCARGO