Settlement of Securities

As per the SEBI circular, settlement of running account for securities has been discontinued because there will not be any change in the ownership of the securities when pledged. Therefore the settlement is applicable only for funds, once in every 30/90 days.

Settlement of Funds

Quarterly settlement is an initiative taken by SEBI and FMC to make sure that the investor’s funds and securities are not misused by any member/broker/agent. Quarterly settlement is nothing but transferring the unused funds available in trading account to your primary bank account which is also called as running account settlement.

Quarterly settlement on 1st Friday of the Quarter

In case you are trading regularly, the account has to get settled once in a quarter as per the SEBI Guidelines. The quarterly settlement shall be done on the 1st Friday of the quarter (i.e. Apr-Jun, Jul-Sep, Oct-Dec, Jan–Mar), for all the clients. In other words, the funds settlement will be done on 1st Friday of October 2022, January 2023, April 2023 and July 2023 and so on.  In case the 1st Friday is a trading holiday then the settlement will be done on the previous trading day. This shall be effective from 1st October 2022.

For example, for the quarter Oct 2022 to Dec 2022, the quarterly settlement has to be carried on 1st Friday i.e on 6th Jan 2023, for all the clients.

Conditions for settlement of funds

  1. In case of open position in Derivative segment, apart from the margin that is already blocked, an additional margin of up to 125 % shall be retained. Ex: If the margin blocked is Rs.100 then Rs 100+Rs 125=Rs 225 shall be retained on the day of settlement to take care of any margin/MTM obligation arising in next 5 days.
  2. In case you have not traded for 30 calendar days since the last transaction, the credit balance shall be returned you, resulting in a “Zero” ledger balance at the end of the day. Ex: If you’re last trading day is 12th Oct and if not traded till 11th Nov then on 12th Nov the full amount payout will be processed.
  3. Statement of Funds settlement is mailed immediately after settlement with subject CLIENT: (Client code) DIGITAL RETENTION STATEMENT FOR THIS QUARTER

Reference: https://www.nseindia.com/trade/members-faqs-actual-settlement-of-funds-and-securities

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