Banks in some states will be closed for business on Monday, September 16, 2024 though the stock markets will be open for trading to observe Eid-e-Milad, a day dedicated to celebrating the birth of Prophet Muhammad. However, business will be truncated in the stock markets too, with clearing and settlement being closed for the day.
Therefore, Monday will be treated as a settlement holiday on account of Eid-e-Milad. A settlement holiday is a day when trading is possible, but clearing and settlement are closed for Payin and Payout of stocks and funds.
Settlement on September 17
The significance of a settlement holiday lies in the fact that exchange of money for securities can happen only on the following business day. It will not happen on the settlement holiday since settlement and clearance of trades and payments are not processed on that day.
However, it must be noted that equities, equity derivative section and SLB (Securities Lending and Borrowing) segment will remain open for trade on Monday too.
Through the SLB service investors in stock markets can borrow and lend equity shares to and from other market participants, which facilitates liquidity and boosts market efficiency.
RBI announcement
An RBI statement on September 14 said, “…there will be no transactions and settlements in Government securities, foreign exchange, money markets and rupee interest rate derivatives on September 18, 2024. Settlement of all outstanding transactions due on September 18, 2024 (Wednesday) will get postponed to the next working day, i.e., September 19, 2024 (Thursday).”
Banks closed in these states
Reports said that public and private sector banks will remain closed in a number of states such as Gujarat, Mizoram, Karnataka, Tamil Nadu, Uttarakhand, Andhra Pradesh, Telangana, Manipur, Jammu, Kerala, Uttar Pradesh, New Delhi, Chhattisgarh, Jharkhand for Eid-Milad. However, online banking services will be functioning normally on September 16. Only the branches of the banks will remain closed.
Banks will be closed in the following states on different days in September — Sikkim, Chhattisgarh, Maharashtra (September 17), Sikkim (September 18), Jammu and Srinagar (September 20), Kerala (September 21), Jammu and Srinagar (September 23 and September 25).
While public and private sector bank branches are closed on September 16, trading can be done in BSE and NSE though there will be no settlement today. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
