@nithin Why other brokers block BTST on settlement holidays, but Zerodha allows it?
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So budget day is a settlement holiday, which means the shares you buy today, we do not receive credit of them tomorrow, but instead on Monday. Tomorrow’s transactions are also settled on Monday.
Essentially, we have settlements of 2 trade dates happening on Monday - Trades of Friday and Trades of Saturday.
The order of settlement on Monday is as follows:
- Shares sold on Friday are debited
- Shares bought on Friday are credited
- Shares sold on Saturday are debited
- Shares bought on Saturday are credited
So, when you buy on Friday and sell on Saturday, we receive the securities payout from the Clearing Corporation (Step 2 above) and must make these securities available for settlement to the Clearing Corporation (Step 3) within a very short timeframe. We’ve optimised our settlement process to be able to do this, and hence are able to offer BTST on settlement holidays too.
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