All trading holidays by default are considered as settlement holidays as well. However, there are specific instances when trading continues, but settlement processes are not carried out. These situations arise on days when the stock markets remain open for trading, but due to certain banking holidays, the clearing corporations declare these days as settlement holidays. In such cases, while trading activities proceed as usual, the clearing and settlement of trades, are temporarily paused. The settlement is then rescheduled and processed on the next available working day.

As a consequence of this delay, the settlement cycle will shift from the usual T+1 to T+2, meaning that settlements will take place two trading days after the trade instead of one.