What happens to open positions or debit balances?
If
a client has open positions or a debit balance, these will not be automatically
squared off during the quarterly settlement process. Instead, these positions
will be managed according to the company's Risk Management Policy. A square-off
will only occur if specific risk parameters are met or there is a margin
shortfall.
Key Points
·
Quarterly Settlements: These are mandatory and cannot be opted out of by either the
client or the broker.
·
SEBI Requirement: SEBI enforces the settlement process to ensure the proper
management of client funds.
·
Open Positions and Debit Balances: These are handled based on the company's risk management criteria
and are not affected by the settlement process unless specific risk conditions
are triggered.
Understanding these rules ensures
that clients know their obligations and the procedures followed by brokers in
managing their trading accounts.