The Indian stock market follows series types (on NSE) and group types (on BSE) to control trading, maintain transparency, and safeguard investors. These types determine the trading and settlement process of a stock. Here are the key types in detail:
EQ Series (Equity)
- Common type for stocks.
- Permits both intraday and delivery-based trading.
- Settlement takes place on T+1 (trade date + 1 working day).
- Example: Highly traded large-cap stocks.
BE Series (Book Entry / Trade-to-Trade)
Also known as T2T (Trade-to-Trade) segment.
- Only delivery-based trading is permitted; no intraday squaring off.
- Introduced to control speculation and manipulation in stocks with unusual price movements or low liquidity.
- Example: Stocks with unusual price movements or low liquidity.
BT Series (Buyback Tender)
- Used in buyback transactions of shares by companies.
- Stockholders can tender their shares in this series for buyback offers.
- Settlement takes place as per buyback terms.
BL Series (Block Deals)
- Used in block deals between two stockholders, typically large institutional transactions.
- Minimum value: ₹10 crore.
- Executed in a separate trading window to prevent market price fluctuations.
GC Series (Government Securities)
- Denotes trading in government bonds and securities.
- Offers retail investors
IL Series (Illiquid Stocks)
- For stocks classified as illiquid by stock exchanges.
- Special conditions apply to minimize the chances of manipulation.
BSE Group Classifications
- A Group: Stocks that are actively traded and highly liquid.
- B Group: Less liquid than A Group stocks but still quite liquid.
- T Group: Trade-to-trade stocks (similar to NSE’s BE series).
- Z Group: Companies that have failed to meet listing norms and corporate governance standards.
Why These Series Matter
Investor Protection: Helps avoid speculative bubbles and manipulation.
Transparency: Helps ensure transparency in settlement and trading.
Risk Management: Helps investors understand the liquidity and restrictions associated with a stock before trading.
Final Thoughts
It is important for traders and investors to be aware of these series. For instance, if you buy a stock from the T2T segment, you have to take delivery of the stock and cannot sell it on the same day. However, stocks from the EQ series offer flexibility to trade on the same day.
