Settlement Holiday 2024

A settlement holiday has been declared, on Monday, 16th September 2024, in observance of Id-e-Milad. This will impact trading and settlement processes for all transactions executed in the equity and derivative segments on 13th and 16th of September 2024.

But what exactly is a settlement holiday, and how does it affect your trading activity?

What is a Settlement Holiday?

A settlement holiday is a day when market depositories (NSDL and CDSL) do not process the clearance and settlement of trades. While trading activities may still occur on a settlement holiday as exchanges (NSE and BSE) are open, the actual exchange of money for securities (settlement) are only processed on the next working day.

Why Should You Be Aware of Settlement Holidays?

Settlement holidays can impact both your buying and selling strategies, especially if you're dealing with Delivery (Cash) or Margin Trading Facility (MTF) transactions.

For example - If you buy shares on a Friday, 13th September, expecting to sell them on Monday, 16th September to capitalize on a price rise, the holiday means you can’t sell until Tuesday, 17th September. Being aware of settlement holidays helps you adjust your trading plans and avoid potential disruptions.  

Impact of the Settlement Holiday on 16th September 2024

Due to the settlement holiday on Id-e-Milad, some trading operations will be affected. Here's a breakdown of what you need to know:

Delayed Settlement for Trades Executed on 13th and 16th September 2024

All trades placed on Friday, 13th September and Monday, 16th September in both the Equity and Derivative segments will be settled on Tuesday, 17th September. This means that you won’t be able to sell any of the securities bought on these dates until the settlement process is completed the next day.

Impact on Delivery (Cash) Transactions

• For shares bought on 13th September 2024:
  These shares will be visible in your BTST (Buy Today, Sell Tomorrow) holdings on 16th September. However, you will only be able to sell these shares on Tuesday, 17th September.

Impact on Margin Trading Facility (MTF)

• For shares bought under MTF on 13th September 2024:
  While these shares will appear in your MTF positions on 16th September, you will only be able to sell them starting Wednesday, 18th September.
• For shares bought under MTF on 16th September 2024:
  The shares will appear in your positions on Tuesday, 17th September, but you will be able to sell them only on or after Wednesday, 18th September.

Summary of Key Impacts:

Please Plan Ahead

If you're an active trader or an investor using the Delivery or Margin Trading Facility (MTF), it's essential to be mindful of this delay and plan your trades accordingly.