Why is money not credited to the demat account after squaring off position on Friday? Zerodha’s Nikhil Kamath explains

Stock Market Today: Today is a settlement holiday, and thus, settlements of funds and stocks don't happen. This happens when banks in Maharashtra are closed, but trading on exchanges is open, said Zerodha founder Nikhil Kamath in a tweet.

The banks are closed on account of Eid-e-Milad-un-Nabi on Monday.

This explains why the money is not credited to the demat account after squaring off position on Friday.

“Most brokers don't allow shares bought on Friday to be sold on Monday because of this,” said Zeodha founder Nikhil Kamath in a tweet.

“We at @zerodhaonline are among the few brokers that allow you to sell stocks bought on Friday,” highlighted Kamath.

“By the way, due to the settlement holiday, your equity intraday profit credits and F&O credits aren't included in your trading balance or are not available for withdrawal today,” Kamath noted.

Since the Eid-e-Milad holiday is shifted from September 16 to 18, there will be a settlement holiday on September 18 also. But September 16 continues to be a settlement holiday, the Zerodha founder added.

The Maharashtra state government has shifted the Eid-e-Milad-un-Nabi holiday from Monday, September 16, to Wednesday, September 18. Nevertheless, the trading holiday decided earlier on the 16th remains a settlement holiday, whereas Wednesday will again be a settlement Holiday.

Other settlement holidays will be -

Wednesday, October 2, 2024, on the account of Mahatma Gandhi Jayanti, when settlements will not be done for trades executed earlier on the NSE, BSE and MCX.

Friday, November 1, 2024, also will be a settlement holiday on account of Diwali-Laxmi Pujan, when no settlement will be made for trades on the NSE and BSE.

November will have another holiday as no settlements will be made on Friday, November 15, 2024, on account of Guru Nanak Jayanti. This will include trade settlements both on the NSE and BSE

Wednesday, December 25, 2024, Christmas will be the last settlement holiday of the year when settlements will not be done for trades executed earlier on the NSE , BSE and MCX.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.