Settlement Holiday and its Impact
Traders,
What is delivery based equity trading?
When you buy stocks and hold it overnight, we call it delivery based equity trading. If you buy/sell stocks and exit it before 3.30 PM, it is called intraday trading.
What type of account is required to trade delivery based equity?
You will need a trading account through which you would be buying and selling stocks. Stocks bought would be credited to your demat account and if you have sold delivery stocks, such stocks would be debited from your demat account. Note that demat account is very similar to your bank locker and demat account is required only for trading equity (intraday or delivery) and not for trading F&O.
What is a settlement?
settlement delay
When trading stocks in India, equity settlement happens on T+2 days. ‘T’ meaning the trade day or day you traded.
So for example if you bought shares on Monday(T day), the shares will be credited to your demat account on Wednesday( Monday is T day, Tuesday is T+1 and Wednesday is T+2 day).
Similarly if you sold the shares on a Friday(T day), the funds will be available for withdrawal on Tuesday (Monday is T+1 day and Tuesday is T+2 day. Saturday and Sunday are not considered as working days).
Both the cases above are called as Normal settlement, but once in a while we have these situations when exchanges are open but depositories are closed.
Exchanges are where you have your trading account, so you will be able to buy/sell, but since depositories are closed, you will not be able to take delivery of shares on those days to your demat account.
3 things all of you need to be aware of is that when you buy stocks for delivery (using product type as CNC):-
- On Zerodha, Your stocks on T+1 day will show in T1 holdings, Click here to read the risks of selling stocks before taking delivery from your T1 holdings.
- On Zerodha, Your stocks on T+2 day will also show in T1 holdings because the delivery of stock happens only on T+2 evening.
- On Zerodha, Your stocks from T+3 onwards will show in demat holdings.
Settlement Holiday?
We have 2 stock exchanges in India NSE, BSE and 2 depositories NSDL and CDSL.
What happens when the stock exchanges are open and depositories which hold your demat accounts are closed? It basically causes confusion and this blog is intended to educate you about the same.
The stock exchanges are open on Thursday, April 11, 2013, but it is a settlement holiday(depository holiday) on the occasion of Ugadi/Gudi Padwa.
You don’t need to worry much because it is only a few times a year that the depositories are closed but the stock exchanges are open. The following are such days for the year 2013:
The days which are holidays for depositories but not for the exchange are the following for 2013:
| 1. | 25th Jan 2013 | Friday | Id-E-Milad |
| 2. | 19th Feb 2013 | Tuesday | Chhatrapati Shivaji Maharaj Jayanti |
| 3. | 1st Apr 2013 | Monday | Annual Closing of Banks |
| 4. | 11th Apr 2013 | Thursday | Gudi Padwa/Ugadi |
| 5. | 1st Jul 2013 | Monday | Annual Closing of RBI |
| 6. | 30th Sep 2013 | Monday | Half year Bank Closing |
Here’s an example, assuming you only buy and have not sold the purchased stocks:
| Day of Week | Trade Executed | Position on Terminal |
| Monday | Bought Reliance | |
| Tuesday | Bought TATA Steel | Reliance in T1 |
| Wednesday (Depository Holiday): | Reliance in T1, TATA Steel in T1 | |
| Thursday | NO RELIANCE, TATA Steel in T1 | |
| Friday | Reliance in Demat Holding,No TATA Steel | |
| Saturday Onwards | Both Reliance and Tata steel in Demat |
Again in brief, If today is a settlement holiday but exchanges are open then:
- Stocks bought yesterday, you cannot view/sell it today from either T1 holdings.
- Stocks bought for delivery any day before yesterday, you can view and sell from either T1 or DEMAT holdings.
This is not applicable from Feb 2020 onwards.
Hopefully, this clarifies any query you might have on the impact of a settlement holiday when the exchanges are open..
Happy Investing,
if i have bought bank nifty option today that is Friday and Monday is settlement holiday can i sell it on Monday.
Dear sir
Issue-:account opening
I have many time login to app All proses is complete
Time to time call customer care very lenthy irresponsible
Support & servis team amount is didect i week over but
Issue is as atis
Kindly help-:Log in to zerodha app
Thankyu
Hi Moazzam, we’re sorry to hear this. Please create a ticket at support.zerodha.com with details of the issue, so that our team can check and have this resolved at the earliest.
I am pour person
Hi Nitin,
Expiry settlement happens in case of Stocks also?
Suppose I took Jindal Steel Call of Strike Price 60 and it closed at Jindal Steel closed for 60.50 on Expiry Day at 3.30pm, then what will be the settlement method?
Hi Naman, since you hold long ITM CE, you will have to take delivery, which requires that you have full cash of the entire contract value. If you do not have sufficient funds, an interest rate of 0.05% is charged on the debit balance. This can also mean that the stock will be sold by our RMS team to make up for the debit balance in the account. We’ve explained the policy for settlement of equity derivatives here: https://support.zerodha.com/category/trading-and-markets/margins/margin-leverage-and-product-and-order-types/articles/policy-on-physical-settlement
Refund money
Hi Naman, could you please create a ticket at support.zerodha.com with details of the issue, so we can have this resolved at the earliest?
My loss trading 😭
4/5/2023 ka REC LTD INTRADAY PROFIT JAMA KABHI HOGA .
I have sold some shares on 30th March 2022. Can you please tell me when it will get settled? Also its P&L will be shown in FY 2021-22 or FY 2022-23? Thanks
Sir, o had recently bought shares on ZERODHA. In my portfolio it’s showing T-50. so is it that I have to wait for 50 days for the settlement? Will that period decrease? I’m new to trading… Thank you
Hey Danzil, when you purchase shares for delivery, they will show up in the holdings as T1 quantity until they are credited to the demat account. The settlement takes T+2 working days. Explained here.
Hi,
I have sold Minda corp on 1.11.21 and .message received from CDSL that Minda corp qty debited to your demat account on 3.11.21 but still I have not received money in my bank account. Kindly check and do the needful.
Please explain the N/A concept after physical sttlement in buying future position what amount and date should be added there to add trade into portfolio
Hi Zerodha Team, I did Buy today 7th May 2021 to carry forward the position, the order shows normal order. However I can see it has been automatically Sold without any action (its normal order and not Intraday) as I am 100% sure. It has got sold at 15:29 by system. This is not acceptable. Also sometime it shows miscalculation when we do carry forward position, kindly correct that.
Dear sir
On last settlement holiday 13 apr my profile above 11000 but in contract not and statement it’s showing loss of 1600
Is profit amount is credited after some days?
Thanks you
Sir I bought few shares as CNC on 19-2-21 friday ie., on settlement holiday… Can I sell it as BTST on Monday 22-2-21 or Tuesday 23-2-21 ?… Thanks
I have a query that on the clearing holidays can I do a intraday or not.pls reply ASAP thanks.
Yes lohith you can
But if you can make profit than its use after sattel your profit
I understand from my experiences with zerodha, Fully depending on machine program and logic where as while calling to update the error for them to take corrective action, people are not capable to understand or not willing to take into consideration ratherthan explains their screens. If this situation continues it is difficult survive in the market with fully knowledgeable people who looks for good services. I do agree that Brokerage is competitive where as service and system isnot good for active traders. Take a note and try to improve the system with competent executives.
I have share in holding t+2 can I sell today ? Today is a settlement holiday?
Yes, you can.
Hi sir,
I purchased some stocks on 29th March 2019. As per this document I am unable to see those stocks even as T1 on 1st April. No record of it is seen anywhere. Please let me know when can I see those stocks ?
Since April 1st was a settlement holiday, the trades from Friday weren’t settled. You’ll see these stocks in T1 today.
Sir can I do intraday trading on 01.04.2019 ?
yesterday i buy stock in cnc mode . and its not moved to holdings why? please i need a information regarding.
Yesterday was a settlement holiday on account of Chhatrapati Shivaji Maharaj Jayanti. Read this bulletin for more information
Sir,
One day before settlement holiday , i bought some futures under NRML which i am carrying forward.My question is whether i can sale these futures on settlement holiday. I am asking because when today i called up zerodha executive , he said i can’t sale these futures tomorrow. But in the trailing posts it appears that i can sale the these futures.
Please clear my doubt.
You can indeed sell futures. Only stocks bought are affected.
Hi Sir,
I have bought Infy call option (NRML) today and tomorrow is settlement holiday. Can I sell it tomorrow or should I have to wait ?
Settlement holidays wouldn’t affect F&O.
Hi Sir
Mai muhurt Trading ke Samay trade Kiya tha cnc me. Mera holding nahi show nahi kar Raha hai. Mai use Kaiser sell Karu.
I had bought some said
On 17/8/18
But they are not shown on my trading account
And ballenceof money transfer
And myFUND IN ZERODHA
IS ALSO MSMATCH
PLEASE CLEAR THIS
Best create a ticket on the Support Portal for account specific queries, Ram.
WILL SHARES WON’T EVEN SHOW IN POSITIONS TOO. PLEASE REPLY ASAP.
hi yesterday i had some amount in my trading account and today morning that is the 17 august its saying equity Balance is zero
why
Dear sir,
I am very new to trading. I bought 41 nos of tata steel stocks on 30.04.2018. On may 1st I could not see my stock. And also i did fund transfer before market opening time Rs.50000 mistakely that I forgot the holiday. I could not see this also in my funds. Can you please tell me the reason behind that.
Regards,
Bhuvana
Sir,
I purchased 300 shares of kwality on 27.4.18 . Since 30.4.18 is a settlement holiday, I couldn’t see my kwality shares in my positions but my doubt is, since 1.5.18 is a trading holiday , will my kwality shares shows on 1.5.18 or will it be there on 2.5.18 in my postions??
Sir
I have converted mis to cnc on friday with client id xp1225 . Can i
Square off my position on Monday.
Sir can i do intraday trading smoothly on settlement holiday.
????
No, you cannot sell the stocks bought on Friday on Monday, however, you can trade intraday.
Sir,
I purchased future 1 lot today 27april18, can I sell on monday I.e on 30thapril 18
Pls suggest
Yes, you can.
Sir I have bought cnc shares friday(today), can I sell on Monday (settlement holiday).
No, you cannot.
Hi,
Will I be able to do the intraday trading on Monday 30 April 2018??
Yes, you can.
sir
can i do intraday trade on settlement holiday
You can make intraday trades on a settlement holiday, yes. Only BTST trades with shares bought in the previous session wouldn’t be possible.
Mcx (commodity) also closed on 30 april 2018 ??
No, MCX will remain open.
Sir I have bought some shares of pc jewellers and ace on 28 March 2018 but it is not showing in my demat a/c?
Sir,Stock purchased on 28march not showing in my holdings today also.why sir
Hey Anas, that’s because today is a settlement holiday. You should have received an email and SMS from us about this as well. This information is also posted on our bulletin here.
Sir, Please ignore my last post. I bought CNC on 28th. Will I be able to sell under BTST on 2nd April.
No, that wouldn’t be possible.
Sir, I bought CNC on 28th. Will I be able to sell under BTST today( 30th March)
Sir ur system of informing settlement holiday is not good….. u have to inform ur customer before settlement holiday and not in the evening when trading is over before the holiday day…..
Now I will definitely suffer a huge loss
Sir im buy a CNC Shares 28/03/2018
but today 29/03/2018
my account is empty postion
not view in my account .
?????
client id (xx5199)
Y don’t you guys tell us about the settlement holiday in advance rather than at the end of the day so that we can plan accordingly
Sir.
I i sale the cnc bas share today Wednesday then when money transfer in my zerodha acc
You’ll receive the margin credit immediately, and you can use this to make new trades. This fund is settled on T+2, so end of Friday.
Sir , on setllement holiday can we do trading from zerodha ?
Yes, you can.
is intraday allowed on settlement holiday
Yes, you can place intraday trades.
Can I do intraday?
I saw you reply 🙂
I bought nifty 10500 PE option and hold today ..as i got msg by 6:30 pm on Monday delivery buy/ sell not possible bcos of settlement holiday.
Is it possible to sell for option trading ?? On Monday 19th feb…
Or i have to wait for 20 th…??
does zerodha support good till cancel orders in equity ?
Sir mere pass TRF ka sell position on 30/11/2017 100 intraday quantity tha per ho square off nahi ho paya tha so mera 33000 block kiye the aaj 6/12/2017 ko mera 100 quantity sell hua per o mere block ammout se na katate huye mere regular account me negative position dikha raha h plz solve it
My id is YJ0850
Not to worry. This position is cleared off at the end of the day.
Hi. I am holding bank nifty option with expiry of 19/10/17, as on 19th there will be only Mahurat trading. Can i sell it during mahurat trading or i need to close it by 18th only. Plz guide
Manzoor, the weekly contracts are expiring tomorrow.
I have bought banknifty option today.Since tomorrow is expiry and settlement holiday,can I sell it tomorrow?
Yes,you can. Settlement holiday doesn’t affect Derivative contracts.
Can i buy shares in equity on settlement day??
Thanks nithin sir,i want to know that mis can do on settlemnt holiday..and i read all comments and i have got my answer ..it is yes ..but i want to know can we do cnc in option..tomorrow means on settlement holiday…plz reply soon.
Sunil kumar..
Sunil,
You can buy in CNC and sell stocks from your holdings. Those stocks bought on Tuesday, 9th May 2017 will not be available for selling on Wednesday 10th May 2017 i.e., BTST transactions will not be available.
is Intraday(MIS) can be done on settlement holiday or i have to buy it on cash which is in my account without margin.
MIS can be done on settlement holiday.
Dear Sir,
I would like to buy some shares of Hind Zinc on 28th of March 2017,which is a settlement holiday. will I be entitled to get the dividend,if the record date is 30th of March?
Please explain.
With regards,
Rajkishore Gandhi.
Client ID 6991
Hmm.. no
Thanks a lot.
Dear Nitin,
I am sorry to say,but the answer provided on the matter was not true.I would be certainly entitled to get the divided if I could bought on 28th of March.
Hope you people will be take appropriate care to answer such categorized questions,and may please be obliged us with,proper guidance.
With regards,
Rajkishore Gandhi.
Raj,
You’ll always have to look at the ex-date to determine if you’ll get dividends or not. You’ll have to buy the stock before ex-date in order to be eligible to receive dividends. Here’s a detailed explanation: https://tradingqna.com/t/if-i-buy-or-sell-shares-on-ex-date-of-dividend-announcement-do-i-receive-the-dividend-what-is-the-record-date/174
Dear Venu,
Thank you very much for the right direction,would have been better if told on the day first.
With thanks and regards,
Rajkishore Gandhi
Dear sir,
i bought mient share 50 nos ,, they allotted 50 bonus share , when it will show in my holding share list.
thank you
It depends on the company, 2weeks or more.
[…] In addition to the NSE and BSE holidays, the following holidays were announced for Currency Trading and for Clearing & Settlement. Find out more about settlement holidays and its impact on delivery based equity trading by reading our post here. […]
i have bought call option yesterday in nse. today is bobay election holiday. can i sell this in nse
Yes, no issues with futures and options. Only for equity/stocks delivery trades can’t be sold.
Nithin K, I am super frustrated and wanted to talk to you directly. Not sure how i can do it.
I transferred some money from my commodity account to bank yesterday and till now 10:30am today, I didn’t receive it in my bank. I wanted to buy a stock and it was at super low.. as of now, it already went up by 3% from lows.. The only reason for my inability to trade is – Your delay in crediting money to my account. Why is that? Why can’t you deposit in 8am batch? An why can’t i receive it in less than 30 minutes? You can work on this with a charge if needed.
Secondly, Why is transferring money from commodity to equity account is not possible? If this is govt regulation, then your withdrawal and deposit speeds must be fastened by a 1000 times.
Now, I am like, money is there.. but not there..
I have been trading with scottrade (in the US) and zerodha is no where near it in terms of quotes update..
You GOT TO work on it!
-ram
Ram, fund withdrawals have to be done through NEFT, and NEFT takes time. Not in our control, this is in the hands of RBI
Equity to commodity is not allowed by SEBI.
Quotes update on the terminal is also a function of how many ticks are changing on the exchange and we are also limited by the bandwidth constraints with Indian leased line providers. Comparing US to India may not really be the right way to do this. That said, for fund withdrawals we are working on adding an IMPS option for people who want it much faster. (IMPS would cost a little extra from the bank).
What is the meaning of (T1: 2) before my stock name?
Check this answer.
I have read this Blog. As per my understanding, stocks bought previous day of the settlement holiday will be shown as T1 holdings on the settlement day. But, in a bulletin (https://zerodha.com/marketintel/Bulletin/279) I could see that stocks I bought on 9th of Dec 2016 could not be sold on 12th of Dec. The 9th Dec is the previous trading day of the settlement holiday on 12th of Dec.
Could you please clarify my doubts.
Stocks bought day before settlement holiday won’t show up on T1. If we show it and you sell it, it will lead to you short delivering as stock you bought before settlement holiday will come into your trading account only on T+3.
sir, can we trade in Futures on Settlement day..??
Yes, you can. Settlement holiday doesn’t affect futures and options.
[…] In addition to the NSE and BSE holidays, the following holidays were announced for Currency Trading and for Clearing & Settlement. Find out more about settlement holidays and its impact on delivery based equity trading by reading our post here. […]
[…] In addition to the NSE and BSE holidays, the following holidays were announced for Currency Trading and for Clearing & Settlement. Find out more about settlement holidays and its impact on delivery based equity trading by reading our post here. […]
I loss 5 lakh in market sir. How can I recover it sir
Unfortunately no quick way to recover. I’d suggest taking a break or reduce your trading size to bare minimum, spend some time studying/practicing to be a good trader. I’d suggest going through this: http://zerodha.com/varsity/
Hello Sir,
As I am a VERY beginner to trading and to Zerodha. I had buy 125 shares of CROMPGREAV but its under T1 holding. Should i able to sell these shares before completion of T1 settlement days ?
You can sell them. When you sell the stock before taking delivery, it’s called a BTST trade that comes with a certain degree of risk to it. The risk of short delivery which you can read here: http://zerodha.com/z-connect/queries/stock-and-fo-queries/btstatst-buyacquire-today-sell-tomorrow
According to this, stocks bought on 10 would show up in T1 Holdings on 11 (11 being Settlement Holiday) but just a few days ago, I’d bought Havells on 31 March & I couldn’t see it anywhere on 1 April. I even called up your desk to confirm since the margin was still blocked.
One more thing, if I bought shares tomorrow (8 April, being a settlement holiday), I presume there will be no problem in selling them on Monday or Tuesday?
Shares bought today will not be available for sale tomorrow, since there’s a DP holiday tomorrow. It’s updated here: https://zerodha.com/marketintel/Bulletin/169
Sorry but what about shares bought on 8th April? Would I be able to sell them on Monday or Tuesday?
Yes, there will be no concerns with shares bought on 8th. You can sell them on Monday/Tuesday.
Thanks. Good day.
There was a settlement holiday on April 1st, because of which stocks bought on 31st weren’t allowed to be sold on 1st April. https://zerodha.com/marketintel/Bulletin/166
Also note that there is a settlement holiday on April 08, 2016 being Gudi Padwa. However the Equity markets continue to function as normal. In lieu of the settlement holiday, shares bought on April 07, 2016 shall not be available for selling on April 08,2016 i.e BTST transactions will not be available for shares purchased on April 07.2016.
Hi Nitin,
Expiry settlement happens in case of Stocks also?
Suppose I took Jindal Steel Call of Strike Price 60 and it closed at Jindal Steel closed for 60.50 on Expiry Day at 3.30pm, then what will be the settlement method?
Please guide….
If stock closes at 60.5, all 60 calls will get settled at Rs 0.5 (60.5-60)
I am holding few stocks purchased on 8th of FEB. Can I sell them tomorrow considering tomorrow being Depository Holiday?
YEs you can.
Hi Nithin Sir,
In day trading,
what is the trading settlement of bank nifty & nifty future in zerodha ?
Didn’t get your question. Both these futures settle to the underlying index.
Respected sir,
I bought 100 Nos [email protected] under CNC ON 22.12.2015.Stocks purchased on 23 reflected in pi and q-zerodha.how this missed?
Regards,
DrRMMRao,
BE,MBA-IT,PhD-Management
https://zerodha.com/marketintel/Bulletin/149
[…] few additional holidays announced for Currency Trading and for Clearing & Settlement – NSCCL. Click here to understand impact of settlement […]
Nithin sir,
I am still not understanding why is settlement holiday is even considered in counting T1 and T2 quantities. In case of stocks purchased a day or 2 days before settlement holiday, why does the share vanish altogether after T1 day? In case of settlement holiday, can’t you just consider it as T1 even after 2 days after purchase and allow the transaction normally on the T+3 day? After all T1 means T+1 settlement day. Why do you even consider “number of trading days” instead of “number of settlement days”?
For example, this year I bought a share on 9 november and 11 november was muhurat trading which was a settlement holiday. 12 november was also a trading + settlement holiday. So, on 13 when I tried to sell the stock, it had vanished completely as 13 was technically T+3 day (T being 9, T+1 being 10 and T+2 being 11) nut due to settlement holiday, the stock was not delivered and hence it was not shown as holdings or T1. Couldn’t it just be shown T1 ignoring the settlement holiday as a “0th” day?
Yep technically possible, will speak to our team and check if any other issues in implementing this.
Hi Nitin Sir
1) i have 327 shares in my demat i sell 100 shares before settlement holiday, so remaining shares is 227. but now it’s showing 0 shares in holding is that settlement holiday impact ?
2) if i sell 100 shares of X company rs 50 from my demat account, now i have 5000 rs balance available
should i use these money for trading same day or i need to wait for t+2 days
3) according to this if i trade same day after selling X company’s shares, the 5000 rs credited in my account after t+2 days so is it risky to trade with 5000rs same day after selling shares.
1. Can u send this query to [email protected] with client ID.
2. You can use it the same day for buying more stocks.
3. Selling shares and buying other stocks with that money is not risky. Buying shares and selling it before getting delivery is risky, as chances of short delivery.
shares bought on 31 mar 15 could not be sold today due some settlement.
For these sort of things I request to some intimation prior day via sms/ email
Its not possible for us to find the blog update everyday
Sam, most people don’t read emails, or end up deleting them. So we update all these on our bulletin: https://zerodha.com/marketintel/Bulletin/. We will start sending out emails from next time.
Sir my zerodha kite account is zero 000
Wher is my fund in my account…
Please see this
Thank you
Dear Zerodha,
I am holding 525 shares of Prestige at 262…
If I have sold 500 shares of them on T+2 day under CNC at 264 and again buy back them in CNC at 260…
Then the shares are again considered as T+1 or the trade is considered as MIS and kept in same as T+2…??
Regards,
Trade is considered MIS and kept is same as T+2
Hi there,
My query is I bought shares in Equity under the product type MIS and later converted it to CNC.
1. Will I be able to still sell on the T-day under CNC.
2. Is there any charges for making the conversion from MIS to CNC and back on the same day.
Cheers
1. Yes You can sell on T day under CNC
2. No, there are no charges for conversion from MIS to CNC and vice versa as many times you want during the day.
nithin sir, does settlement holiday have any effect on stock/index futures?
No Madhav, doesn’t effect stock/index futures.
Sir I sold kotakbank 1800ce November expiry at 10 and at the end it was 94 . I was in loss of 33k but I couldn’t square off my postion . Next day my 2.5 lac money swiped what to do next I called thousands times in customer care many tickets but no response ..
Thanks
For f and o if I want to hold the product overnight whhich option shud I select like mis
Check this post Sachin, you have to use the product type as NRML for holding positions overnight.
But in normal case one can sell stock on T+2 or not?
Yes correct!
My fund has not credit in my account due to budh purnima sattlement day…so fund kya kal ho skta hai add mere account me ?
Yes normally you can sell on T+2
i have query on settlement price of nifty future.
say for month of april2013, 25th april at 3.30 pm the closing price of nifty 5916 is the ultimate settlement price ?
if i bought nifty fut @ 5900 then my profit would be 16*50 – brokerage.?
Sorry for the late response. Yes 16*50 – brokerage and all statutory charges. Check out our Brokerage calculator for this.
Dear Sir / Madam,
I ( client ID RS1654) sold GildM futuire May on 29/04/2013 at 27267 . This position got profit ( almost 645 points) till today. Today at about 7.25 pm I recieved a call from Zerodha trading executive telling me to squarre off the position. The reason he was telling that I have to take the delivery of the position which is risky. So I squarred off the position without any hesitation as I have experienced the occasion in which the care was taken by Zerodha to curtail loss of the clients ( my wife is having equity trading account with Zerodha from last 10 months)
But actually I wanted to continue the position as I initiated the trade by seeing the charts only & accordingly profit target was of 1500 points. I don’t know the trading rules in commodity market as I am very new in the commodity trading ( 15 days only).
I just wanted to know what care should have taken from my side to continue the position so that I will take care next time.
Yours Faithfully,
Dr.Suhas Kothavale
The blog above is for equity and not for commodity. Don’t mistake the above blog as an answer to your query.
The answer to your query:
Gold futures which you trade on MCX is a compulsory delivery commodity once it hits the compulsory delivery period. Compulsory delivery period happens 5 days before the expiry date.
So what this means is that if you trade the 5th June gold future contract, 5 days before this date, gold futures goes into compulsory delivery. What this means is that during this period there is a chance of getting assigned delivery if you are holding a gold future contract.
So what this means is that , if you are long gold futures(the big one 1kg), you will have to pay 100% of the amount( around 30lks) and take physical delivery and if you are short gold, you have to give delivery of 1kg of gold as specified by the exchange. The delivery happens in Ahmedabad typically, so all of this can cause a lot of confusion and a possible loss.
Hence it is best to square off all positions of gold 5 days before the expiry and roll it over to the next expiry if you intend to continue.
Cheers,
Explain the impact of dividend record day due to such holiday.for eg I have purchased shares of REC on 14 th Feb 2018 , it is showing t1 holding today,16 th Feb 2018 is the record date for dividend, will I get dividend or no t?