Stock market remains closed on August 15; holiday settlement on August 16

Traders who plan to invest in the stock market, or expect their trading settlement in stocks soon, will need to trade this holiday season. On August 15, the stock markets have a trading holiday due to the Independence Day celebrations. This means that trading on the stock market is not allowed on Monday. Notably, while the market is open for trading on Tuesdays, however, the depots are closed on this day due to Parsi New Year.

The market has entered a long weekend from Saturday to Monday and trading will resume on Tuesday.

But there is a holiday on August 16 due to Parsi New Year. One should know that settlement holidays and trading holidays are different.

Stock trading takes place on stock exchanges namely BSE and NSE. Though there are two custodians namely NSDL (National Securities Depository Limited) and the CDSL (Central Depository Securities Limited).

A settlement holiday delays the execution of a trade in stocks by one day.

When an investor buys or sells stocks, bonds, exchange-traded funds, mutual funds, and others, two important dates should be kept in mind. These are the transaction date and settlement date. There are T+ Settlement Day which can be T+1 and T+2. The letter ‘T’ stands for ‘trading day’ or ‘trade date’, which means the day on which the market-related instruments were bought or sold.

So, for example, if you bought stocks on Monday, this will be your “trading date.” With the T+1 option, the shares you have purchased will be credited to your Demat account on Tuesday. Meanwhile, under the T+2 option, the shares you bought will be credited to your Demat account after two days, ie Wednesday. The case is similar to selling stock, but the credit is made to your bank account linked to the Demat account.

However, since there is a settlement day on August 16. This means that shares bought or sold on Monday will show in your Demat or bank account on Wednesday for the T+1 option and on Thursday for the T+2 option.

Also, trading on August 12 will have the settlement day on Wednesday under the T+2 option.

In general, settlement holidays fall due to public holidays, but there may be other reasons why depots are closed. Saturdays and Sundays are standard holidays. Holidays also include BSE and NSE holidays and all other market related holidays.

There are a total of 16 vacation days in India in the current year. 10 vacation days have already passed. Including the public holiday of August 16, there are now only six regular public holidays left in the country.

The next holiday in the settlement is on August 31 due to the Ganesh Chaturthi festival. Meanwhile, on October 5 there are three vacation days due to Dussehra, on October 24 because of Diwali Laxmi Pujan and on October 26 as part of Diwali Balipratipada. The last holiday before 2022 is on November 8 due to Gurunanak Jayanti.

Trading holidays on BSE and NSE also fall on 31 August, 5, 24 and 26 October and finally on 8 November.

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