Traders who are planning to invest in the stock market, or are looking forward to settle their trading in equities, need to take note of these holidays. August 15 will be a trading holiday in stock exchanges due to Independence Day celebrations. That is, trading will not be allowed in the equity market on Monday. It is worth noting that while the market will be open for business on Tuesday, the depositories will remain closed on this day on account of Parsi New Year.
Market A long weekend from Saturday to Monday has entered, and trading will resume on Tuesday.
But, because of the Parsi New Year, August 16 is a Basti holiday. one should know that the agreement Holidays And business holidays are different.
Trading in equities is done on stock exchanges like BSE and NSE. Whereas there are two depositories named NSDL (National Securities Depository Limited) and CDSL (Central Depository Securities Limited).
A settlement holiday delays the execution of a transaction in shares for one day.
When an investor buys or sells shares, bonds, exchange-traded funds, mutual funds and others – two important dates should be taken into account. These are the transaction date and settlement date. There are T+ settlement days which can be T+1 and T+2. The letter ‘T’ stands for ‘Trading Day’ or ‘Transaction Date’, which means the day on which market related instruments were bought or sold.
For example, if you bought shares on Monday, this becomes your ‘trading date’. Under the T+1 option, the shares purchased by you will be credited to your demat account on Tuesday. Meanwhile, under the T+2 option, the shares purchased by you will be credited to your demat account after two days i.e. on Wednesday. The case is similar to selling shares, but the credit will be credited to the bank account linked to your demat account.
However, since August 16 is a settlement holiday. This means shares bought or sold on Monday will appear in your demat or bank account on Wednesday for T+1 option and on Thursday for T+2 option.
Also, in trading done on August 12, Wednesday will be the day of settlement under T+2 option.
Usually settlement holidays are due to bank holidays but there can be other reasons for depository closure. Saturday and Sunday are settlement holidays by default. In addition, settlement holidays include BSE and NSE holidays, and all other market related holidays.
There are total 16 Settlement Holidays in India in the current year. 10 settlement holidays have already passed. There are only six settlement holidays left in the country including the August 16 holiday.
The next settlement holiday will be on August 31 on account of Ganesh Chaturthi festival. Meanwhile, three settlement holidays await on October 5th due to Dussehra, on 24th due to Diwali Lakshmi Puja, and on 26th as part of Diwali Balipratipada. The final settlement holiday for 2022 will be on 8 November on account of Guru Nanak Jayanti.
The trading holidays on BSE and NSE will also be on 31st August, 5th October, 24th and 26th October and finally on 8th November.
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