What is the impact of the settlement holiday?

IMPACT OF SETTLEMENT HOLIDAY:

1. No funds payout on settlement holiday: As the clearing corporation or bank are closed on settlement holiday, therefore brokers cannot do funds payout on settlement holiday. You can see the list of settlement holidays here.
   
   
2. No benefit on early pay-in (EPI) of securities by non-POA clients: - On settlement holidays, non-POA clients will not get EPI benefit/margin by doing early pay-in of securities and therefore they have to maintain required margin for executing any sell order on settlement holiday.
   
   
3. No Margin Against Pledge: No margin benefit will be given for pledging the approved securities on the settlement holiday. In such a case, the margin benefit from a successful pledge request will be credited to the Jainam account only on the next trading day after the settlement holiday.
   For example, if Thursday is a settlement holiday and a client has pledged his approved securities in Jainam for margin on Thursday, then the collateral margin will be received by him only on Friday.
   
   
4. No buy limit against yesterday’s credit: Clients cannot use their delivery selling credit from a stock sold and credit from derivative segment (e.g., currency and commodity derivative) on a day before settlement holiday to buy on settlement holiday in equity or F&O segment.
   For example, if Thursday is a settlement holiday, then sell credit from stocks sold on Wednesday cannot be used for investing again on Thursday.
   
   
5. No buy limit against settlement holiday’s credit: As per SEBI regulations and Jainam’s RMS policy, 70% of the delivery sell amount is made available on the same T-day of a sale transaction. However, if the stock is sold on settlement holiday, then such delivery selling credit cannot be used to purchase on settlement holiday in any segment.
   
   For example, if a stock is sold on Thursday, which is a settlement holiday, then such sale credit cannot be used to purchase again on the same day, i.e., Thursday. Let’s assume Thursday is settlement holiday, then your trading a/c balance at Jainam on settlement holiday (Thursday) will not include: