Zerodha’s Nikhil Kamath explains delay in demat account credits today

Settlement holiday today: Today, as a settlement holiday, there will be no clearing of funds and stocks, although trading on the exchanges continues. 

This pause in settlements is due to banks in Maharashtra being closed for Eid-e-Milad-un-Nabi, a point highlighted by Zerodha's Nikhil Kamath in a recent tweet. 

As a result, the transfer of funds to demat accounts, particularly following trades squared off on Friday, will be delayed.

Kamath stressed that while trading remains active, the actual crediting of funds and stocks will not occur today. This delay is caused by the settlement holiday on September 16, 2024. 

Although the Maharashtra state government has rescheduled Eid-e-Milad-un-Nabi from the 16th to the 18th of September, 2024, the 16th will still be observed as a settlement holiday, with the 18th also being a settlement holiday.

Looking ahead, there are additional settlement holidays throughout the year. On October 2, 2024, Mahatma Gandhi Jayanti will be observed as a settlement holiday, followed by Diwali-Laxmi Pujan on November 1, 2024, Gurunanak Jayanti on November 15, 2024, and Christmas on December 25, 2024. 

During these holidays, no settlements will be processed for trades executed on the NSE , BSE, and MCX.

Kamath also pointed out that while many brokers prevent the sale of stocks bought on Friday until the following Monday due to settlement issues, Zerodha allows these transactions. This approach provides greater flexibility for clients despite the challenges posed by settlement holidays.