Settlement holiday today: Here’s when you’ll get money, shares after trade

Trading holidays and settlement holidays exist to give market participants a break from the regular trading and settlement activities.

Trades executed in the equity and derivative segments on September 29 and the previous day will be settled on October 4 as stock exchange clearing houses mark a settlement holiday on account of Eid-e-Milad.

The NSE and BSE shifted the settlement holiday to September 29 after the Reserve Bank of India (RBI) and the Maharashtra government moved it by a day.

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No settlements take place and no delivery of stocks is made on a settlement holiday. If there is a holiday between the day of the trade and the settlement date, it can result in a delay in the final transfer of shares. This is because the settlement date signifies the complete transfer of ownership of the shares rather than the trading day itself.

On a settlement holiday, trading in equity markets takes place as usual but clearing and settlement remain shut for Payin and Payout of stocks and funds.

A trading holiday is different from a settlement one, as stock markets remain closed and no trading takes place.

Also read: Stock Market Today: Top 10 things to know before the market opens

Though shares purchased on September 28 and September 29 will appear in T1 holdings on September 29, selling them won’t be possible until October 4 as October 2 is also a trading and settlement holiday on account of Gandhi Jayanti.

Trading holidays and settlement holidays exist to give market participants a break from regular trading and settlement activities. The next settlement holidays are October 2 and October 24, which is Dussehra. The two days are also trading holidays. There will be on settlement on November 14 (Diwali), November 27 (Guru Nanak Jayanti) and December 25 (Christmas).