What is a Quarterly Settlement Payout Process?

What is a Quarterly Settlement Payout Process?

Quarterly Settlement Payout Process means that every three months, according to SEBI Circular dated 27072022 , any money in your trading account will be sent back to your primary bank account. This happens on the first Friday of January, April, July & October for the Preceding Quarter. If there is a trading holiday on that Particular Friday then the Quarterly Settlement Payout happens on Previous Trading Day, Exchanges issue Circular for revision in Quarterly Settlement Payout date in such cases.

Here are the key points:

· During this process, you can't punch any payout requests through the app or website post 3:30PM.

· To avoid last-minute issues, it's a good idea to transfer money back to your trading account before next trading day.

· You'll see a note about this payout in your account statement.

· You'll get a statement about this retention and an email once the settlement is done. We'll also email you when the quarterly payout process for your account is completed.

Important Point to Note:

· If you have open positions on this date, brokers can keep up to 225% of the margin needed.

· For example, if you have Rs. 5,00,000 and buy 10 Lots of Bank Nifty, each needing Rs. 30,000, the total margin is Rs. 3,00,000 (30,000 x 10). The broker has to keep 225% of this as a balance, which is Rs. 6,75,000 (3,00,000 x 225%). If you don't have that much, the broker keeps the entire amount in your account without doing a Quarterly Settlement Payout for your trading account.



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