What are the revised settlement dates for equity and derivatives segments announced by SEBI?
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Synopsis
SEBI has updated the settlement dates for equity and derivatives segments due to declared holidays in September 2025. This article explores the implications of these changes and the measures taken to ensure smooth trading processes during festive periods.
Key Takeaways
- Revised settlement dates aim to streamline processes.
- Settlement holidays coincide with Id-E-Milad.
- SEBI introduces intra-day position limits for risk management.
- Market participants informed of changes to ensure smooth trading.
- Domestic equity indices show positive trends amid regulatory updates.
Mumbai, Sep 8 (NationPress) - The Securities and Exchange Board of India (SEBI) declared new settlement timelines for both equity and derivatives segments this Monday, in light of the settlement holidays scheduled on September 5 and 8, 2025, as announced by clearing corporations.
The holidays, which coincide with Id-E-Milad, celebrate the birth anniversary of Prophet Muhammad.
While stock exchanges will continue to operate, there will be no clearing or settlement activities on those dates since the depositories NSDL and CDSL will be closed. Therefore, both fund and securities transfers are set to be processed on the following working days.
SEBI noted that the settlement for the cash and Securities Lending and Borrowing Mechanism (SLBM) segment for trades conducted on September 4 (Thursday) and September 5 (Friday) will be conducted on September 9 (Tuesday).
Furthermore, trades executed on September 8 (Monday) and September 9 (Tuesday) will be settled on September 10 (Wednesday).
In the derivatives segment, the settlement for trades dated September 4, 5, and 8 will also occur on September 9 (Tuesday).
SEBI mentioned that this clarification is aimed at facilitating smooth trade processing and ensuring prompt communication with market participants during the festive period.
In a bid to mitigate risks associated with excessive exposures and to maintain market liquidity and order, SEBI has rolled out a framework to closely monitor intraday positions in equity index derivatives.
An official announcement revealed that SEBI will impose specific intra-day position limits for each trading entity, restricting net intra-day positions to Rs 5,000 crore per entity, calculated using futures equivalents.
In alignment with the existing end-of-day gross limit, the gross intra-day position will be capped at Rs 10,000 crore.
As concerns mount over participants accumulating substantial positions, particularly on options expiry days, which have instigated volatility and threatened market integrity, these new regulations will take effect on October 1.
Meanwhile, domestic equity indices exhibited positive trends. At approximately 2:58 P.M., the Sensex surged by 189 points to reach 80,900.10, while Nifty stood at 24,809.55, gaining 68 points.
Point of View
I emphasize that SEBI's revised settlement schedules are crucial for maintaining market integrity and ensuring a smooth trading experience. These changes highlight the regulatory body's commitment to addressing market participants' needs while navigating the complexities of festive breaks.
NationPress
08/09/2025
Frequently Asked Questions
What are the new settlement dates announced by SEBI?
SEBI has revised the settlement dates to September 9 for trades on September 4 and 5, and September 10 for trades on September 8 and 9.
Why are there settlement holidays on September 5 and 8?
These holidays are in observance of Id-E-Milad, marking the birth anniversary of Prophet Muhammad.
What impact do these changes have on trading?
While trading continues, there will be no clearing or settlement on the specified holidays, affecting fund and securities transfers.
What regulations has SEBI implemented regarding intraday positions?
SEBI has set intra-day position limits of Rs 5,000 crore per entity and will enforce these regulations starting October 1.
How are the equity indices performing amid these changes?
As of the latest update, domestic equity indices are trading positively, with the Sensex and Nifty showing notable gains.
