Description

NSE shifts multiple securities to Trade-for-Trade segment with 5% price band effective January 22, 2026, requiring settlement on a trade-to-trade basis without netting off.

Summary

NSE has announced surveillance measures moving six securities to the Trade-for-Trade (T2T) segment with a 5% or lower price band effective January 22, 2026. Three securities will be shifted from rolling segment EQ series to BE series, and three from SM series to ST series. These securities will no longer be available in the rolling segment and will require trade-to-trade settlement without netting off. Additionally, multiple securities will continue in T2T segment under current surveillance review.

Key Points

  • Six securities being moved to Trade-for-Trade segment effective January 22, 2026 (Thursday)
  • Trading restricted to BE/ST series with 5% or lower price band
  • Securities will be removed from rolling segment (EQ/SM series)
  • Settlement on trade-to-trade basis with no netting off allowed
  • Action taken under Capital Market Segment Trading Regulations Part - A, 2.6
  • Multiple securities to continue in T2T segment under ongoing surveillance
  • Movement criteria: Price Earnings Multiple, Price Variation & Market Capitalization

Regulatory Changes

Under NSE Capital Market Segment Trading Regulations Part - A, 2.6, the Exchange has implemented surveillance measures to ensure market safety and investor protection. Securities failing specified criteria will be restricted to Trade-for-Trade segment with enhanced price bands. The regulatory framework allows NSE to move securities between rolling and T2T segments based on periodic surveillance reviews.

Compliance Requirements

  • Members must execute all trades in affected securities on trade-to-trade basis only
  • No netting off of positions will be permitted in T2T segment
  • Members must take adequate precautions while trading these securities
  • Price movements restricted to 5% or lower band
  • Settlement obligations must be met on delivery basis for each trade
  • Members should monitor the list of T2T securities regularly as it is updated fortnightly

Important Dates

Impact Assessment

Market Impact: High - The shift to T2T segment significantly impacts liquidity as netting off is not allowed. Traders must take/give delivery for each trade, increasing settlement obligations and capital requirements.

Trading Impact: The 5% price band restriction limits intraday volatility and trading opportunities. Removal from rolling segment (EQ/SM) means these securities cannot be traded for intraday settlement.

Investor Impact: Retail and institutional investors must adjust strategies as short-term trading becomes less attractive. Compulsory delivery increases capital commitment and holding period.

Affected Securities - EQ to BE: AAA Technologies Limited, Manaksia Aluminium Company Limited, Avro India Limited

Affected Securities - SM to ST: Milton Industries Limited, Vilin Bio Med Limited, Vadivarhe Speciality Chemicals Limited

Continuing in T2T: Sanco Industries Limited, Mangalam Drugs and Organics Limited, Rollatainers Limited, and others

The surveillance action is precautionary and should not be construed as adverse action against the companies. Members may contact surveillance@nse.co.in for queries.

Impact Justification

Significant trading restriction affecting multiple securities with mandatory trade-to-trade settlement, 5% price band, and removal from rolling segment impacting liquidity and trading strategies