To spur foreign investments, while political parties have recommended changes in equity tax and while there are arguments both in favour as well as against LTCG tax exemption on equity, on the budget day which falls on Saturday this year, stock market will function in its usual timings i.e. from 9:15 am to 3:30 pm.
In 2015, also when the budget was announced on February 28 that also was on Saturday, stock markets were open for trade.
So, if you also want to trade on Budget day, here are a few important pointers you should note:
1. Pre-opening orders can be placed during 9:00 am and 9:08 am which will be matched for trade between 9:08 am and 9:15 am.
2. Also, orders placed on January 31, 2020 and February 1, 2020 will be settled on February 4.
3. Importantly, shares in which long position is taken on January 31 cannot be sold on the budget day i.e. February 1, 2020 as settlement on trades would take place on February 4.
The settlement day for trades is often a day after to avoid any kind of high volatility. In case of spot order, a settlement cycle of T+2 days is adhered to. In such cases, settlement of trade is done on the second day from the day when the order for the stocks was placed. So, if the order was placed on Monday, settlement will be executed on Wednesday.
And for determining the settlement day, all of the holidays falling in between are not accounted for.