What is a settlement holiday and its impact?
Settlement holidays are the days when the markets are open, but the depositories (NSDL and CDSL) are closed. If the shares are sold one day before the settlement holiday, the 20% blocked funds will be included in the Kite funds (opening balance) on the next day, i.e. T+1 day, even if it falls on a settlement holiday.
Visit zerodha.com/z-connect/traders-zone/holidays/settlement-holiday-and-its-impact to know more about settlement holidays and zerodha.com/marketintel/holiday-calendar to see the list of Holidays for clearing and settlement.