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Key Points

The Securities and Exchange Board of India (SEBI) has announced revised settlement schedules for equity and derivatives segments during the Id-E-Milad holidays. Trading will continue, but clearing and settlement will be processed on subsequent working days to ensure market stability. SEBI has also introduced new intraday position limits to manage market risks and reduce volatility. The domestic equity indices continued to trade positively during this period.

Key Points: SEBI Revises Settlement Dates for Market Holidays

  • SEBI modifies settlement dates for September market holidays
  • Clearing corporations declare settlements on different working days
  • Derivatives and cash segment trades impacted by festive break
  • New intraday position limits set to reduce market volatility
2 min read

SEBI issues revised settlement dates for equity, derivatives segments

SEBI adjusts equity and derivatives settlement schedules during Id-E-Milad holidays, ensuring smooth market operations and trade processing.

SEBI issues revised settlement dates for equity, derivatives segments
"The clarification aims to ensure smooth processing of trades - SEBI Official"

Mumbai, Sep 8

The Securities and Exchange Board of India (SEBI) on Monday announced revised settlement schedules for the equity and derivatives segments in view of settlement holidays declared on September 5 and 8, 2025, by clearing corporations.

The holidays, observed on the occasion of Id-E-Milad, mark the birth anniversary of Prophet Muhammad.

While trading on stock exchanges will remain open, no clearing or settlement will take place on these dates as depositories NSDL and CDSL will remain shut. Consequently, fund and securities transfers will be processed on the subsequent working days.

According to SEBI, the settlement for the cash and Securities Lending and Borrowing Mechanism (SLBM) segment for the trade days of September 4 (Thursday) and September 5 (Friday) will be undertaken on September 9 (Tuesday).

The settlement for trades on September 8 (Monday) and September 9 (Tuesday) will be completed on September 10 (Wednesday).

For the derivatives segment, the settlement for trades on September 4, 5 and 8 will be carried out on September 9 (Tuesday).

SEBI said the clarification aims to ensure smooth processing of trades and timely communication to market participants during the festive break.

Earlier, in order to lower the risks associated with excessive exposures and preserve market liquidity and order, SEBI has implemented a framework to track intraday positions in equity index derivatives.

According to an official notice, SEBI has decided to set explicit intra-day position limits for each entity trading, with net intra-day positions being limited to Rs 5,000 crore per entity, calculated using futures equivalents.

Similar to the current end-of-day gross limit, the gross intra-day position will be capped at Rs 10,000 crore.

Amid growing concerns about participants taking large positions, particularly on options expiry days, which caused volatility and jeopardised market integrity, the new regulations will go into effect on October 1.

Meanwhile, the domestic equity indices were trading in positive territory. At around 2:58 P.M., the Sensex was up 189 points, trading at 80,900.10, while Nifty was at 24,809.55, up 68 points.

- IANS

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Reader Comments

S
Sarah B
Appreciate that India respects all religious holidays in its financial calendar. The revised settlement dates make complete sense given the depository closures. Well communicated by SEBI.
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Priya S
The new intraday position limits are much needed! Too many times we've seen volatility spike due to excessive positions. Rs 5000 crore cap per entity seems reasonable to maintain market stability.
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Aman W
While I appreciate the settlement clarity, I wish SEBI would provide these announcements with even more lead time. Some of us need to adjust our trading strategies well in advance.
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Michael C
The derivatives settlement adjustments are particularly important for options traders. Good to see SEBI thinking through the cascading effects of holiday schedules on different market segments.
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Nisha Z
As someone who trades regularly, these regulatory updates are crucial. The position limits effective from October 1st should help curb the excessive volatility we've been seeing on expiry days. Good move! 👍

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