The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) will maintain regular trading operations on January 15, 2026, while implementing a settlement holiday due to municipal elections in Maharashtra. This arrangement creates specific implications for traders, particularly those using Margin Trading Facilities (MTF).

Settlement Operations Suspended

The NSE announced that T+0 settlement number 2026511 will not take place on January 15, 2026. Trades executed on both January 14 and January 15 will have their settlements postponed to January 16, 2026, creating a consolidated settlement process.

The NSE specifically advised members to note the revised cut-off timings for pay-in at depositories due to the adjusted settlement schedule for January 16, 2026.

Maharashtra Election Holiday Declaration

The Maharashtra government declared January 15, 2026, a public holiday under the Negotiable Instruments Act to facilitate local body elections across 29 municipal corporations. This includes Mumbai City and Mumbai Suburban districts governed by the Brihanmumbai Municipal Corporation (BMC).

The notification was issued under Section 25 of the Negotiable Instruments Act, 1881, utilizing powers delegated to the state government by the Ministry of Home Affairs since 1968. The Brihanmumbai Municipal Corporation confirmed the holiday through an order from the state's General Administration and Industries and Labour departments.

Operational Impact on Financial Infrastructure

The public holiday affects multiple components of the financial ecosystem:

• Government and semi-government offices remain closed
• Public sector units suspend operations
• Banks close for the day
• Depositories including NSDL and CDSL halt operations
• Clearing and settlement systems pause functionality

The government order extends to voters registered in Mumbai but working outside the city, allowing them to participate in the electoral process. Vote counting is scheduled for January 16, 2026.

MTF Trading Implications

Margin Trading Facility operations face specific constraints during settlement holidays. When markets remain open but clearing and settlement systems close, share transfers experience delays with several operational restrictions.

Shares purchased under MTF on January 14 will be credited to investor portfolios under MTF positions on January 16, 2026, rather than on the holiday itself. Investors cannot sell shares purchased under MTF or on a buy-today-sell-tomorrow (BTST) basis on January 15, with such transactions permitted only from January 17, 2026, onward.

Market Participant Guidance

While trading activity continues normally on January 15, 2026, the settlement pause delays ownership transfers and affects the timing of share credits to Demat accounts. Market participants should plan their transactions considering these settlement delays and the restricted use of shares for further transactions until settlement operations resume on January 16, 2026.

Securities and Exchange Board of India (Sebi) chairman Tuhin Kanta Pandey has indicated that the no-objection certificate (NoC) for National Stock Exchange's (NSE) initial public offering would likely be granted by the end of January. The announcement was made at a market convention in Chennai, reviving investor interest in what could become one of India's largest public offerings.

Unlisted Share Price Revival

Following the Sebi chairman's comments, NSE's unlisted share prices have shown immediate response in the unofficial market:

Narinder Wadhwa, founder of SKI Capital Services, confirmed the current pricing at ₹2,050.00 per share, noting that "activity on the counter is likely to increase with the NoC expected by this month end." Ashish Nanda, president and chief business development officer at Kotak Securities, observed that "the unlisted space, which had turned silent for the past many months, will probably see some revival."

Regulatory Timeline and Process

The NoC has been pending since March when Sebi permitted NSE to expedite share transfer processes between investors. A Sebi NoC is mandatory for every market infrastructure institution seeking to list publicly. After receiving the certificate, NSE must prepare its offer document and submit it to Sebi for final approval.

According to industry sources, if clearance is received by month-end, NSE shares could be listed by August-September. An investment banker indicated that "formal presentations by February" would be followed by draft document filing within two months.

Shareholding Pattern Changes

NSE's retail investor base has expanded significantly in recent quarters:

Market Valuation and Competitive Position

The potential IPO could value NSE at ₹7.00 trillion, representing a premium to its current valuation of ₹5.07 trillion. This positions NSE significantly ahead of its competitor BSE, which holds a market capitalization of ₹1.09 trillion.

Historical Context and Provisions

NSE's IPO has been delayed for nearly nine years due to regulatory investigations into alleged malfeasance by former management. The exchange recognized a provision of ₹1,297.00 crore in the September quarter for settlement applications filed with Sebi regarding colocation and dark fiber matters.

The development is expected to have positive spillover effects on other capital market-related themes in the unlisted space, including agricultural derivatives bourse NCDEX and MSEI, both preparing for equity segment launches.