MUMBAI, Feb. 5 -- Settlement disruptions hit investors for a second consecutive day on Thursday as operations at National Securities Depository Ltd (NSDL) remained suspended because of a technical glitch.

As a result, investors who bought shares on Tuesday did not receive them on Wednesday in their demat accounts, while those who sold did not see sale proceeds credited. Short-term traders, who depend on timely settlement to square off positions, have been hit hardest by the disruption.

NSE Clearing Ltd, the clearing corporation of the National Stock Exchange (NSE), issued instructions to brokers to move shares and funds from their pooled accounts with depositories to client accounts. However, many of these instructions were not matching...