What caused the NSDL settlement disruptions?

The disruptions were caused by a technical glitch related to a network connectivity issue with another depository.

How are investors affected by the NSDL glitch?

Investors are experiencing delays in receiving purchased shares and sale proceeds, impacting their trading activities.

What is the T+1 settlement cycle?

The T+1 settlement cycle means that if shares are bought or sold on one day, the transaction should be completed by the next day.

Home / Business and Economy / Depository Glitch Halts Stock Trading for Second Day

Depository Glitch Halts Stock Trading for Second Day

5 Feb

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Summary

NSDL operations suspended for a second consecutive day due to a technical glitch.
Investors experienced disruptions in share settlement and fund transfers.
The issue has significantly impacted short-term traders dependent on timely settlements.

Depository Glitch Halts Stock Trading for Second Day

Operations at the National Securities Depository Ltd (NSDL) experienced disruptions for a second consecutive day on Thursday, February 5th, 2026, owing to a persistent technical glitch. This ongoing failure has directly impacted investors, preventing the crediting of shares into demat accounts for Tuesday's purchases and withholding sale proceeds for those who sold shares. Short-term traders, who rely heavily on the timely settlement of positions, have been most severely affected by this disruption.

NSDL experienced a network connectivity issue with another depository, leading to the temporary suspension of certain services. While NSDL indicated a plan to commence securities pay-out by 4 pm on Thursday, with funds expected by night, operations remained offline at the time of reporting. Regulatory bodies like SEBI mandate immediate reporting of such glitches and impose penalties for continued failures, with fines potentially reaching ₹2 lakh per working day.