Difference Between Trading Holiday and Bank Holiday
5paisa Research Team
Last Updated: 04 Dec, 2024 05:40 PM IST
Content
- Introduction
- What is a trading holiday?
- What is a bank holiday?
- Differences between trading holidays and bank holidays
Introduction
In India, there are two kinds of holidays, announced and approved by the government of India. It is a trading holiday and a bank holiday. The stock market holidays are NSE holidays and BSE holidays, where NSE and BSE are the trading markets in which buying and selling of shares take place.
What is a trading holiday?
A trading holiday is defined as any special holiday when trading of shares does not take place at NSE or BSE. NSE operates from Monday to Friday and is closed every Saturday and Sunday. This list involves the as well.
The list of trading holidays are available here.
What is a bank holiday?
A bank holiday, on the other hand, refers to a business day when financial institutions are closed for all public dealings. This is relevant for physical branch locations as online banking operations do not stop during this period. It is to be noted here that bank holidays do not necessarily collide with the BSE holidays, NSE holidays, or the commodity market holidays. Every month, the second and fourth Saturday is a bank holiday.
Differences between trading holidays and bank holidays
Bank holidays may vary a bit from state to state, owing to their list of state holidays but a trading holiday remains the same all across the country.
The Exchange holidays are decided by the exchange authorities in India, viz; the BSE and the NSE. The bank holidays, on the other hand, are decided by the Central Government, State Government, and the various Union territories in India.
The Exchange may, however, close the market on days other than the scheduled holidays or may open the market on days originally declared as holidays. The Exchange has the authority to extend, advance, or reduce trading hours when it deems fit and necessary. In the case of bank holidays, this is not possible.
If a bank holiday falls on a weekend, then the bank would observe a holiday either on the Friday before it, or the Monday after it. Such provision does not exist with a trading holiday.
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