Diwali is a very special day for the stock markets. Muhurat trading takes place in the stock market on the evening of Diwali. During this time, trading takes place for one hour. However, other institutions necessary for settling trades remain closed on this day, so this day is a settlement holiday. That is, trading takes place but settlement does not take place. ICICI Direct has sent information to its shareholders through mail about the impact of this on shareholders.


What information has ICICI Direct given? ICICI Direct has informed its customers through mail that Diwali day i.e. Friday, November 1, 2024 is a settlement holiday, so customers will not be able to sell the shares purchased on 31 October 2024 through delivery i.e. cash or pay letter i.e. margin funding (MTF) on 1 November 2024. In such a situation, customers should prepare their strategy for these two days in advance. Along with this, ICICI Direct has informed that all the trades to be done on 31 October and 1 November in the equity and derivative segment will be settled on Monday 4 November. All shares purchased under delivery on 31 October will be seen under Security Projection (BTST) Holdings but they can be sold only on 4 November. All shares purchased on 31 October under MTF will be seen under MTF Position but they can be sold only on 4 November or thereafter. Along with this, new purchases will not be allowed on 1 November under MTF. What is settlement holiday? In share trading, many parties like stock market, depositories and banks are involved in completing the trade. Some days in the year the stock market is open but banks and depositories are closed. In such a situation, stock trades happen on these days but these trades are not settled. This is called settlement holiday. This settlement of trades is done in the next trading session.