Can someone please clarify what is the meaning of Clearing Holiday ? What is its practical significance for us retail traders, what effect does such holiday have for us ?
Thanks and best regards
Generally, clearing holidays occur when Banks have a holiday but Exchange is Open.
Therefore, settlement will not occur on these days, so if you have taken shares for delivery on 14th for eg, they would be settled by 16th (T+2) and available to sell CNC on 17th,
but if you took delivery on 15th, what you expect to Sell on 18th will not be present in your demat bcos 17th was a holi, so one needs to wait an extra day.
Day traders don't have a problem, but as you can see a swinger long deliverables might have or someone already short expecting his buy (closing trade EQ to land) and its not available.