A settlement holiday occurs when stock markets remain open for trading, but the depositories (NSDL and CDSL) remain closed. This affects specific types of trading activities. If you sell shares on a settlement holiday, and those include both already-settled shares and shares in your T1 holdings, DP charges will be levied twice.
How settlement holidays impact your trading
- Regular trading: You can continue buying and selling stocks normally during settlement holidays.
- Auction markets: Auction markets remain closed when depositories are closed, so you cannot participate in auction trading.
- Settlement processes: Stock transfers and deliveries get delayed as depositories handle these processes.
You can view all upcoming settlement holidays on Zerodha's holiday calendar.
To learn more about settlement holidays, see zerodha.com/varsity/trading-holiday-vs-settlement-holiday.