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Settlement holiday on April 1: What does it mean for stock market and mutual fund investors?

Published on 31/03/2026 03:17 PM

Settlement holiday: The ongoing week is a truncated one on Dalal Street, along with a settlement holiday, likely confusing investors regarding how and when their transactions will be processed.

According to the stock market calendar shared by the exchanges, March 31 is a trading holiday on account of Mahavir Jayanti. Furthermore, April 1, 2026, is a settlement holiday on account of the annual bank closing. Investors might wonder what would happen to the orders placed on March 30 and April 1.

Before that, let's understand what a settlement holiday is.

Settlement holidays refer to days when markets are open for trading, but the trades are not cleared due to the closure of depositories and/or banks. Due to the settlement holiday, all trades made during the day are settled in the next cycle for the respective segments.

Since the Indian stock market follows a T+1 settlement, the orders are settled a day after they are placed.

For instance, if you purchase shares on Monday, they are usually settled on Tuesday. And in case you buy shares before a settlement holiday, the actual transfer of shares and payment will happen after the holiday.

Since March 31 is a trading holiday, trades executed on March 30 will not be settled on that day. Furthermore, as April 1 is a settlement holiday due to annual bank closing, the settlement of these trades will be deferred to the next working day, even though normal trading activity will continue in the Indian stock market.

Investors can place the orders on April 1, but they will not be able to sell the stocks purchased on March 30 on Wednesday. Here's when the settlement of funds and securities will be processed:

According to details shared by Zerodha, your trading account will not show the following balances on April 1:

As for mutual fund investors, the cut-off time will determine the net asset value of the trade, but all transactions made on March 30 will be settled on April 2. The circular shared by BSE highlights these key takeaways for different fund categories:Saloni Goel has over nine years of experience as a business journalist, with a strong track record of covering the financial markets. Over the course of her career, she has reported extensively on global and domestic equities, IPO market activity, commodities, and broader macroeconomic trends. Her reporting reflects a keen eye for detail, data-driven analysis, and the ability to spot emerging themes early.

At Mint, Saloni has been part of the markets team for nearly two years, where she currently works as Chief Content Producer. In this role, she plays a key part in shaping market coverage, driving editorial strategy, and ensuring timely, accurate, and insightful reporting across. She has been closely involved in breaking news coverage and in crafting stories that help decode the complex financial developments.

Before joining Mint, Saloni worked with some of India’s leading business newsrooms, including The Economic Times and Business Standard. Throughout her career, she has worn multiple hats—ranging from reporting and editing to contributing in-depth features and identifying new storytelling formats and market trends.

Her experience in fast-paced digital newsrooms has given her an edge in simplifying complex market concepts without losing analytical depth. Outside of work, Saloni enjoys reading books and spending time with her pet.

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