Stock Market Holiday Today: BSE and NSE Observe Settlement Holiday on September 5
5 Sep, 2025 09:59 IST|Sakshi Post
The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) are observing a settlement holiday today, Friday, September 5. While regular trading will continue as usual, the settlement of trades executed on this day will be deferred.
According to an NSE circular, September 5 and September 8, 2025, will both be settlement holidays. The circular also referenced an RBI notification regarding changes to the public holiday list under the Negotiable Instruments Act.
What This Means for Traders
- Trades on September 5 or 8: Stocks bought on these dates will be credited to demat accounts on September 9.
- Selling Restrictions: These stocks can only be sold starting September 10.
- Temporary Shift from T+1 to T+2: India follows a T+1 settlement system, where trades are settled the next business day. But during a settlement holiday, the process effectively shifts to T+2, adding an extra day.
What is a Settlement Holiday?
- A settlement holiday is a day when banks and depositories involved in the clearing cycle remain closed, even though the stock market functions normally.
- Buying on a settlement holiday: Shares will reflect in your demat account a day later than usual.
- Selling on a settlement holiday: Funds that would typically be credited the next day will also be delayed by one working day.
Settlement Cycles Explained
- T+1: Standard settlement cycle for most equities, where settlement happens the day after the trade.
- T+0: Same-day settlement, currently available for select securities. SEBI plans to roll this out in phases to more stocks.
What’s Happening Now?
With two back-to-back settlement holidays (September 5 and 8), the settlement cycle will see a two-day delay, affecting both share delivery and fund credit.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as investment advice or a recommendation to buy, sell, or hold any security or financial product. Stock market investments are subject to market risks. Readers are advised to consult with a qualified financial adviser before making any investment decisions.
