Settlement holiday: The ongoing week is a truncated one on Dalal Street, along with a settlement holiday, likely confusing investors regarding how and when their transactions will be processed.
According to the stock market calendar shared by the exchanges, March 31 is a on account of Mahavir Jayanti. Furthermore, April 1, 2026, is a settlement holiday on account of the annual bank closing. Investors might wonder what would happen to the orders placed on March 30 and April 1.
Before that, let’s understand what a settlement holiday is.
What is a settlement holiday?
Settlement holidays refer to days when are open for trading, but the trades are not cleared due to the closure of depositories and/or banks. Due to the settlement holiday, all trades made during the day are settled in the next cycle for the respective segments.
Since the Indian stock market follows a T+1 settlement, the orders are settled a day after they are placed.
For instance, if you purchase shares on Monday, they are usually settled on Tuesday. And in case you buy shares before a settlement holiday, the actual transfer of shares and payment will happen after the holiday.
How will April 1 settlement holiday impact investors?
Since March 31 is a trading holiday, trades executed on March 30 will not be settled on that day. Furthermore, as April 1 is a settlement holiday due to annual bank closing, the settlement of these trades will be deferred to the next working day, even though normal trading activity will continue in the .
Investors can place the orders on April 1, but they will not be able to sell the stocks purchased on March 30 on Wednesday. Here’s when the settlement of funds and securities will be processed:
According to details shared by Zerodha, your trading account will not show the following balances on April 1:
- Intraday profits made in the equity segment in trade on March 30, 2026
- Credits made from trades in the derivatives segment of the equity F&O, currency and commodity markets.
- Profits and credits received from equity trades or exiting positions in the derivatives segment on March 30, 2026, and on April 01, 2026, will be available for withdrawal on April 02, 2026, by EOD, according to the bulletin shared by the discount broking firm. This rule also applies to shares bought under the MTF category.
As for mutual fund investors, the cut-off time will determine the net asset value of the trade, but all transactions made on March 30 will be settled on April 2. The circular shared by BSE highlights these key takeaways for different fund categories: