Tuesday, January 11, 2011

DIFFERENCE IN ROLLING AND TRADE TO TRADE SEGMENT

NSE shifting RAMSARUP from rolling segment (series: EQ) to trade for trade segment (series: BE). Can you please explain in your blog regarding different segments in stock exchanges and their significances
Rajeev Daniel

1. Rolling Settlement is a mechanism of settling trades done on a stock exchange.
2. The settlement of majority of trades done in 3 days scrip-wise netted and settlement of such netted trades took place on a single day in the following week. And called T+3 cycles, intraday trading is allowed in rolling segment.
3. However, in the Rolling Settlements, trades done on each single day are settled separately from the trades done on earlier or subsequent trading days. The netting of trades is done only for the day and not for multiple days.
4. Once any scrip is shifted to Trade-to-Trade basis, transactions in the scrip are not netted and all purchase and sale transactions in the same scrip in single settlement are to be settled separately. For example, the trading and settlement in securities of ramswarup industry Ltd. have been shifted to Trade-to-Trade. An investor has bought 100 shares of this company in the morning and he squares off purchase of these 100 shares by selling the same in the trading hours on the same day. In this case, his purchase and sale transactions would not be netted and the investor would be required to give delivery of 100 shares against his sale transaction and payment for the purchase transaction of 100 shares.
intraday trading not allowed in this segment.
5. Generally A and B group share are settled on rolling basis . S, T ,and Z group share is settled in trade to trade basis.

6. exchange shifted scrips in trade to trade segment for control speculaton
7. CLICK HERE TO READ DIFFERENCE OF A , B, T ,S AND Z GROUP SHARE.

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