Settlement Holiday
What is a settlement holiday?
You can place trades as usual, but the actual exchange of funds and stocks (settlement) will only be processed on the following working day. Let’s understand this better with few scenarios:
Scenario 1: Selling stocks
You sold 50 shares of Bank of Baroda for ₹15,000 on Monday, 7th April. Tuesday, 8th April is a settlement holiday.
➡️ The ₹15,000 from your sale will be available for withdrawal or to use for trading on Wednesday, 9th April.
Scenario 2: Intraday profit in Equity or F&O
You made a ₹10,000 profit from intraday trading on Monday, 7th April. Tuesday, 8th April is a settlement holiday.
➡️ The ₹10,000 won’t be available for trading or withdrawal on Tuesday, 8th April. It will be credited and usable on Wednesday, 9th April, since intraday profits are settled on a T+1 working day.
Scenario 3: Option buying and selling
You bought an ICICI Call Option on Monday, 7th April for ₹5,000 (1 lot), and sold it on Tuesday, 8th April (a settlement holiday) for ₹6,000.
➡️ The ₹6,000 received can be immediately used to buy other Index and stock options (excluding short selling and Futures). However, full settlement (so it reflects across segments like Equity and MCX) will happen on Wednesday, 9th April.
Scenario 4: Trades using Margin Trading Facility
MTF stocks will also show up in your portfolio a day later if there’s a settlement holiday. For example, If you buy a stock using MTF on Monday, 7th April.
➡️ On Tuesday, 8th April, there is a settlement holiday, so your MTF stocks will reflect in your portfolio only on Wednesday, 9th April.
Scenario 5: NEFT Payouts after 5 PM placed a day before the settlement holiday
If you request a NEFT payout after 5 PM on the day before a settlement holiday, it will be credited on the next working day. Let’s break it down with a simple example:
You placed a NEFT withdrawal of ₹4,000 on Monday, 7th April, at 6:30 PM. Tuesday, 8th April is a settlement holiday.
➡️ In this case, your money will be credited to your bank account on Wednesday, 9th April, at a minimum by the first half and at a maximum by the end of the day.
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