Friday 05 May 2023: Settlement Holiday and How does it impact you?

Hello Investors and Traders!

As you may already know, starting from January 27, 2023, all securities traded in India have transitioned to a T+1 settlement cycle. This new settlement cycle implies that any securities purchased on a particular day (T day) will be reflected in your demat account on the following day, under regular circumstances. Now, what would happen if the next day after purchasing securities is a normal trading day (exchanges are open) but a settlement holiday (due to bank closures)? In this regard, let’s explore the potential change in your investing and trading activity.

The stock exchanges are open on Friday, May 05, 2023, but it is a settlement holiday on the occasion of Buddha Purnima. Hence, the stocks purchased via the MTF route on Thursday, 04 May 2023, will NOT be reflected in your portfolio holdings / demat account. They will be shown in your portfolio account only on Monday, 08 May 2023.

For shares purchased via Normal route on Thursday, 04 May 2023 and sold on Friday, 05 May 2023, there will be NO early pay-in benefit of 80% of the sell proceeds which is provided as a trading limit on any normal day.

To summarize, no BTST for MTF Trades and for normal trades, BTST would attract sell side margin as early pay-in benefit will not be provided.

Note that since May 05, 2023 is a bank holiday, the currency markets (BCD and CDS) will be closed.

We request you to keep trading & investing on May 05, 2023 with the same in mind.

Product Operations @ Dhan


Are ETF’s also now settled at T+1 ?

Yes, they are listed in the EQ segment and follow T+1 settlement.

1 Like

If stocks bought on 4th May 2023 won’t be visible on 5th May 2023 then how can they be sold on 5th May as mentioned in your post?

@George We made some operational changes (edited the above post) to render the services smoothly. To summarize,

  • If stocks are purchased under normal route - BTST could be done but would attract sell side margin as NO early pay-in benefit could be provided.
  • If stocks are purchased via the MTF route - BTST will not be allowed.

Does it also effects F&O trades executed on 4th May…?

Yes. The credits of premium in Options and MTM gain or loss in Futures will not be included in your account.