Is stock market open on September 18? Check out which securities are open for transactions

The Reserve Bank of India has announced that the government securities market, foreign exchange markets, money markets and rupee interest rate derivatives markets will remain closed for any transaction on September 18 on account of the Eid-e-Milad holiday.

There will also be a settlement holiday on Wednesday, September 18, at the stock exchanges. This essentially means that stock market trading will be open, but trade settlements will be postponed to the next day.

The Reserve Bank of India, in its notification on September 14, announced that the government securities market, foreign exchange market, money market and rupee interest rate derivatives market will remain closed on September 18.

The Maharashtra government had earlier declared a holiday on September 18 on the occasion of Eid-e-Milad, to avoid overlap with Ganesh immersion. The RBI’s notification comes after the Maharashtra government shifted the Eid-e-Milad holiday to Wednesday.

The government declared September 18 as a public holiday under Section 25 of the Negotiable Instruments Act of 1881.

In a notification dated September 16, the NSE also announced that there would be no trade settlements on the day due to a settlement holiday.

“Members are requested to note that on account of the settlement holiday on Sep 18, 2024, multiple settlements have been scheduled on September 19, 2024,” NSE said in a circular.

“The settlement of transactions which are due on September 18, 2024, will be on September 19, 2024 (Thursday). Members are requested to take note of the cut-off timings for pay-in at the depositories end due to the revised settlement timings for September 17 and 19, 2024,” the NSE notification added.

What is settlement holiday?

A settlement or clearing holiday is a day when the stock markets are open, but the settlement and delivery of trades are suspended. The exchanges themselves are open on these days for trading, while depositories, including NSDL and CDSL, are closed. This results in the transfer of securities and funds between buyers and sellers to be postponed to the next working day. However, trading still takes place on these days.

Settlement holidays are not the same as stock market holidays or trading holidays. Each year, the exchanges publish a different list for separate holidays.