September 18 has been declared as a settlement holiday for stock exchanges.

What Happened: September 18 has been declared as a settlement holiday due to the Maharashtra government shifting the holiday of Eid-e-Milad from September 16 to September 18. However, this does not mean it’s a holiday for the stock market. Trading of stocks will continue on September 18.

What Happens on Settlement Holiday: The shares that are purchased on the previous day will not be settled on the settlement holiday. So the shares that are purchased on Tuesday will not be settled on Wednesday. So if an investor makes a profit from a trade on Tuesday, it won’t be available on Wednesday if the investor was planning to use that money for some other trades.

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The trades will be settled on September 19, Thursday. Hence the investors can use the profits for other trades on Thursday. This is also applicable to trades made in the futures and options segment. The same is the case for trades in commodity derivatives.

Since September 18 is a bank holiday, there won’t be trading in government securities, currency derivatives and money markets.

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