Settlement Holiday Announced on Jan 15, 2026 — What Investors & Traders Must Know

Settlement holidays refer to the days when the crucial process of settling the trades is put on hold. Being aware of the settlement holidays is necessary as it will help you plan your trades and gauge the availability of funds.

What is a settlement holiday?

A settlement holiday is the day when transferring of funds and shares between market participants is put on hold. This generally occurs when clearing corporations and banks have a holiday, thus leading to a pause in operations. When there is a Settlement holiday, the settlement process is postponed to the next working day when settling or clearing operations resume. Settlement holiday need not mean that there is a Trading holiday as well.

If the settlement holiday does not coincide with a trading holiday, you can carry out your regular trading activities such as buying or selling stocks on this day. However, the actual delivery of those stocks to or from your Demat account and transfer of funds will only be processed on the next working day. Trading holiday, on the other hand, refers to the day when markets are closed.

Settlement holidays generally occur on bank holidays, holidays declared due to regulatory reasons or when the governments announce holidays due to elections.

Settlement holiday in January 2026

The original list published by the stock exchanges indicated that only January 26, 2026, would be a settlement holiday. However, another settlement holiday has been announced for January 15, 2026, as the Maharashtra government announced municipal elections for Mumbai.

NSE Circulars outline that January 15, 2026 will be a Trading and Settlement holiday for the Capital Market segment, Debt segment, and Currency segment. This means that the T+1 settlement for trades taken on January 14, 2026, which was supposed to happen on January 15, 2026, will be postponed to January 16, 2026.

Relevant circulars by the National Stock Exchange (NSE) for reference:

How settlement works under T+1 cycle

In the Indian stock market, settlement is generally carried out on the next day of placing the trade. The day that the trade is placed, the transaction day, is referred to as T-day and, thus, the settlement is done on the T+1 day. In such a scenario, if the T+1 day is a settlement holiday, then settlement will be carried out on the next working day for the clearing houses, depositories or banks, as applicable.

This is called the T+1 settlement cycle that is followed in the Indian markets.

How settlement holidays affect investors & traders

As traders and investors in the Indian capital markets, there are some important points one must keep in mind, especially pertaining to the settlement holidays.

Delay in credit of shares & funds

If you buy shares on the day prior to a settlement holiday, they will appear in your Demat account on the next working day instead of the T+1 day. If you sell your shares, the proceeds from the transaction will be credited to your bank account on the next working day, not on the T+1 day.

Impact on liquidity

The settlement amount from your trades will be available to you only after the settlement process resumes, thus delaying your ability to reinvest or withdraw funds on the settlement holiday. It is essential that you plan your cash flows and ensure availability of funds in case it is just a settlement holiday and not a trading holiday.

BTST (Buy Today Sell Tomorrow) Risks

If you plan to carry out Buy Today Sell Tomorrow (BTST) trades on the day prior to a settlement holiday, it is important to check if it is a trading holiday as well. If it is not a trading holiday, you may not be able to sell the shares as they would not be available in your Demat account due to delayed settlement. Any attempts to sell those shares may lead to short-delivery penalties.

Derivatives & other markets

The credit of profits or losses from trades in the futures and options (F&O) segment may also be delayed due to a settlement holiday, blocking funds temporarily.

Common misunderstandings

Most people assume that a settlement holiday means that markets are also closed for trading activity. However, this may not always be the case. It is best to check whether it is a trading holiday as well to make sure that you do not miss out on any trading opportunities.

Settlement holidays are usually decided based on holidays of banks, depositories, and clearing corporations more than exchange operations.

How to plan around settlement holidays

As Indian traders and investors, you can plan your trading activity based on the settlement holidays announced by the stock exchanges.

Some of the practical tips to keep in mind are:

• Check settlement calendars ahead of time.
• Plan large trades such that settlement delays don’t affect your liquidity.
• Avoid BTST trades around known settlement holidays to avoid risks of short-delivery penalties.
• Check whether your preferred segments are closed for trading.

Other key settlement dates to note in January 2026

In addition to the exceptional settlement holiday announced for January 15, 2026, there are 19 more settlement holidays scheduled for 2026. A list of the same can be found on the official websites of the stock exchanges. These are generally scheduled on national and festive holidays.

Conclusion

As an Indian market participant, it is important to take a note of upcoming trading and settlement holidays to help you with planning your trades and liquidity. You can stay updated on these trading and settlement holidays by referring to our page on the Ventura website or checking circulars published by stock exchanges.