Eid-e-Milad-un-Nabi a settlement holiday, but Zerodha allows trading, says Nithin Kamath

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Indian stock markets, including equity, derivatives, and SLB segments, remain open today for trading on Eid-e-Milad-un-Nabi. It is however a settlement holiday and as such no settlements happen today, said Nithin Kamath, founder of online brokerage platform Zerodha in his post on the social media platform X.

“Today is a settlement holiday, and thus, settlements of funds and stocks don’t happen. This happens when banks in Maharashtra are closed, but trading on exchanges is open,” said Kamath in the post.

He further stated that most brokers don’t allow the shares bought on Friday to be sold on Monday because of this holiday but Zerodha is among the few brokers that does allow the traders to sell stocks bought on Friday.

However, due to the settlement holiday, the equity intraday profit credits and F&O credits aren’t included in one’s trading balance or are not available for withdrawal today.

Meanwhile, the Zerodha founder has also shared a list of settlement holidays as per the market calendar via a link to the Zerodha website:https://zerodha.com/marketintel/holiday-calendar/“And, Eid-e-Milad is shifted from the 16th to the 18th of September, and the 18th will also now be a settlement holiday. But the 16th continues to be a settlement holiday,” Kamath added.
Like the Indian equity markets, the Multi-Commodity Exchange (MCX) also remains open for its morning and evening sessions.

What is a settlement holiday?

Settlement refers to the process of transferring securities to the buyer and cash to the seller after a trade is completed. On a settlement holiday, although trading can occur, the actual transfer of money and securities will be delayed until the next working day.

Settlement holidays usually coincide with public or bank holidays that affect payment systems, like bank closures.

Market holidays for upcoming months

For the remainder of 2024, Mahatma Gandhi Jayanti (October 2), Diwali (November 1), Gurunanak Jayanti (November 15), and Christmas (December 25) will be observed as market holidays, i.e, when the equity markets also remain closed. The exchanges may issue separate circulars if there are any changes to the holiday schedule.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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