Description

SEBI announces revised settlement schedules for cash, SLBM, and derivative segments due to September 5 and 8, 2025 being declared settlement holidays.

Summary

SEBI has announced revised settlement dates for cash, SLBM (Securities Lending and Borrowing Mechanism), and derivative segments following the declaration of September 8, 2025 as an additional settlement holiday alongside September 5, 2025.

Key Points

  • September 5 and 8, 2025 declared as settlement holidays by Clearing Corporations
  • Derivative segment settlements consolidated for three trading days
  • Cash and SLBM segment settlements split into two batches
  • Stock exchanges have informed all stakeholders about corporate action date impacts

Regulatory Changes

  • Extended settlement cycles implemented to accommodate dual holiday period
  • Consolidated settlement approach for derivatives segment
  • Staggered settlement schedule for cash and SLBM segments

Compliance Requirements

  • Trading members must adhere to revised settlement schedules
  • Stock exchanges must issue circulars to all stakeholders
  • Corporate action ex-dates and cum-dates may be impacted
  • All market participants must adjust operational processes accordingly

Important Dates

  • September 4, 2025 (Thursday): Trading day - settlement on September 9
  • September 5, 2025 (Friday): Trading day, settlement holiday - settlement on September 9
  • September 8, 2025 (Monday): Trading day, settlement holiday - settlement on September 10
  • September 9, 2025 (Tuesday): Settlement day for Sep 4-5 trades (cash/SLBM) and Sep 4-5-8 trades (derivatives)
  • September 10, 2025 (Wednesday): Settlement day for Sep 8-9 trades (cash/SLBM)

Impact Assessment

Market Operations: Significant disruption to normal T+1 settlement cycle, requiring operational adjustments across all market segments. Liquidity: Potential temporary liquidity constraints due to delayed settlements. Corporate Actions: Ex-dates and cum-dates for corporate actions may be affected, requiring careful coordination between issuers and exchanges. Risk Management: Extended settlement periods may increase counterparty risk exposure temporarily.

Impact Justification

Critical operational changes affecting settlement cycles across all market segments during holiday period