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.

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.

Conditions for 30/90 days settlement

  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. In case you are trading regularly, the account has to get settled once in a quarter as per the SEBI guidelines. An email intimation shall be sent to clients before the Quarterly settlement is done which usually be done on 1st or 3rd or 5th Saturday. However, it can be done on a trading day too if there’s a settlement holiday on 1st or 3rd or 5th Saturday.
  4. Statement of Funds settlement is mailed immediately after settlement with subject CLIENT:(Client code) DIGITAL RETENTION STATEMENT FOR THIS QUARTER
  5. The settlements are done across segments and across Stock Exchanges

Next Settlement Cycle

You can know your next settlement cycle from BOX > Fund Transfer > Payout as shown below.

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

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