What is a Quarterly Settlement Payout Process?
Quarterly Settlement Payout Process means that every three months, according to SEBI rules circular view, 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, etc., unless the stock market is closed, in which case it occurs on the last working day before that.
Here are the key points:
· During this process, you can't ask for payouts through the app or website.
· To avoid last-minute issues, it's a good idea to transfer money back to your trading account before this date.
· You'll see a note about this payout in your account statement. As follows:
· 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 ten shares 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 refunding.
· 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.
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