What meaning of SME, EQ, BE, BL, BT, BZ, GC, and IL series stock in the Indian Stock Market?

The Indian Stock Market categorizes securities into various series, each with distinct characteristics, trading, and settlement rules. Below is an overview of series classifications and the types of securities they encompass, providing clarity on how different instruments are traded and settled.

Equity Segment (EQ)

• Definition: Represents equities where both intraday trading and delivery are allowed.
• Trading Scope: Investors can buy or sell these stocks within the same trading day (intraday trading) or hold them for longer periods (delivery).

Small and Medium Enterprises (SME)

• Definition: Dedicated to small and medium enterprises listed on the stock exchange.
• Criteria: Companies listed on the SME platform have a lower market capitalization and are subject to specific listing requirements. You can trade these stocks intraday or take delivery. There are two SME platforms in India: NSE Emerge and BSE SME. SME Traded in fixed lot sizes.

Book Entry (BE)

• Definition: Stocks in the Trade-to-Trade (T2T) segment or T-segment are traded under this series.
• Trading Restriction: No intraday trading is permitted, meaning all trades must be settled by accepting or giving delivery of shares.

Block Deals (BL)

• Definition: Designed for facilitating block deals.
• Criteria: A trade with a minimum quantity of 5 lakh shares or a minimum value of ₹5 crore, executed as a single transaction.
• Trading Window: Special "Block Deal window" open for 35 minutes from 9:15 to 9:50 AM.

Physical Shares Trading (BT)

• Definition: Offers an exit route for small investors holding shares in physical form.
• Limit: Applicable to transactions involving a maximum of 500 shares in the physical form.

Blacklisted Stocks (BZ)

• Definition: Stocks that are blacklisted due to the violation of exchange rules.
• Trading Restriction: These stocks fall under the Trade-to-Trade category, prohibiting BTST (Buy Today Sell Tomorrow) and intraday trading.

Government Securities (GC)

• Definition: Allows the trading of Government Securities and Treasury Bills.
• Trading Scope: Investors can trade in government-backed securities under this segment, offering lower risk.

Institutional Trading (IL)

• Definition: Reserved for Foreign Institutional Investors (FIIs) trading among themselves.
• Condition: Permissible only in those securities where the maximum permissible limit for FIIs has not been breached.

Conclusion

Each of these market segment codes serves a unique purpose, catering to different types of traders and investors, and offering diverse avenues for market participation. Understanding these codes is essential for navigating the complexities of the Indian Stock Market and making informed trading decisions.