Settlement Holiday 2024

10 Sep 2024|

1 min read |

by ICICI Securities Team

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:

Product	Shares Bought On	Selling Allowed On
Delivery	13th September 2024	17th September 2024
MTF	13th September 2024	18th September 2024
MTF	16th September 2024	18th September 2024

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.

Disclaimer

ICICI Securities Limited has its registered office at ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025, India, Tel No:- 022 - 2288 2460, 022 - 2288 2470. The non-broking products / services like iLearn and Financial Learning are not exchange traded products / services and ICICI Securities Ltd. is just acting as a distributor/ referral Agent of such products / services and all disputes with respect to the distribution activity would not have access to Exchange investor redressal or Arbitration mechanism. iLearn is not an exchange traded product/service of ICICI Securities Ltd. All disputes with respect to the activity on the platform would not have access to Exchange investor redressal or Arbitration mechanism.

ICICI Securities Ltd. is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. ICICI Securities Ltd. is a SEBI registered with SEBI as a Research Analyst vide registration no. INH000000990. Name of the Compliance officer (broking): Mr. Atul Agrawal, Contact number: 022-40701022, E-mail address: complianceofficer@icicisecurities.com Investments in securities markets are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. ICICI Securities Ltd. and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Such representations are not indicative of future results. The securities quoted are exemplary and are not recommendatory. AMFI Regn. No.: ARN-0845. PFRDA registration numbers: POP no -05092018. ICICI Securities Ltd. acts as a Composite Corporate agent having registration number -CA0113. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Please note, Mutual Fund, Corporate Fixed Deposits, Bonds, Alternate investment funds, Tax planning, Succession planning, NPS, IPO, Investment Advisory and Loans related services are not Exchange traded products and ICICI Securities Ltd. is acting as a distributor to solicit these products. Please note, Insurance related services are not Exchange traded products and ICICI Securities Ltd. is acting as a corporate agent to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The non-broking products / services like Research, etc. are not exchange traded products / services and all disputes with respect to such activities would not have access to Exchange investor redressal or Arbitration mechanism. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.