Settlement holiday today: Clearing houses closed on 5 May; here’s when you’ll get money, shares after trade

Stock exchange clearing houses mark settlement holiday on Friday, 5 May, on account of Buddha Purnima. Trades executed in the Equity and Derivative segment on 4 and 5 May will be settled on 8 May. Although any shares purchased on 4 May will appear in T1 holdings on 5 May, selling them won’t be possible until 8 May.

The next settlement holiday is on 28 June, due to Bakri Eid celebrations, which also marks a trading holiday. On settlement holiday, trading in equity markets takes place as usual, but clearing and settlement remain shut for Payin and Payout of stocks and funds. It may be noted that the trading holiday is different from the settlement holiday: in the case of the former, stock markets remain closed and no trading takes place. 

Here’s a look at the settlement holidays in 2023

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 in ownership of the shares rather than the trading day itself. Additionally, currency markets will be closed on account of Buddha Purnima as well.