Comment on Settlement Holiday and its Impact

BGR commented on 23 Nov 2015, 12:32 AM

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?

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