Settlement Holiday on 26 August 2026: Stock Market Trading and Settlement Timings
The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) will remain open for trading on Wednesday, 26 August 2026. However, the day has been designated as a settlement holiday on account of Id-E-Milad, resulting in the settlement of eligible trades being deferred to the next business day.
For investors, this means trading will continue as usual, while the credit of shares, sale proceeds, and other settlement-related activities will be processed on Thursday, 27 August 2026.
What Is a Settlement Holiday?
A settlement holiday is a day when the stock exchanges remain open, but the market's clearing and settlement infrastructure does not operate. This includes clearing corporations, depositories (NSDL and CDSL), clearing banks, and other institutions involved in transferring securities and funds between buyers and sellers.
Since these entities are closed, the settlement process will not take place on 26 August. The T+1 settlement cycle will resume on the next settlement business day, 27 August 2026, when eligible trades will be settled.
What Changes on 26 August 2026?
Trading hours and order execution remain unchanged. The only impact is on the settlement process, with the credit of shares, sale proceeds, and certain fund transfers being completed on 27 August 2026, the next settlement business day.
- Credit of sale proceeds: Funds from eligible shares sold on 25 August 2026 will be credited on 27 August 2026.
- Withdrawal processing: Withdrawal requests submitted after 4:00 PM on 25 August will be processed by 10:00 PM on 27 August, while instant withdrawals will remain available on 26 August.
- Shares purchased: Shares purchased on 25 August will be eligible for delivery-based selling only after they are credited following settlement on 27 August 2026.
What Remains Unchanged?
Despite the settlement holiday, the market will operate normally on 26 August. Equity, equity derivatives, and currency derivatives will be available during their regular trading hours, with orders processed as usual.
Intraday trades will also continue without any change, as positions are opened and closed within the same trading session. The holiday affects the settlement and transfer of funds and securities, rather than the execution of trades.