Starting, October 1, 2022, the settlement of the client’s running account for funds will happen on the first Friday of every  quarter. Following are the scenarios on client impact due to settlement.

 i) Clients who have not traded for a period of 30 days: 

For clients who have not executed any trades in their account for the last 30 days and have a credit in their ledger account then irrespective of the last settlement date, the broker will have to mandatorily transfer back the funds from the client’s ledger account to his bank account within next 3 days. This is irrespective of the fact that the client may have opted for a quarterly or monthly settlement of his running account.

 ii) Clients who have traded or have an open positions and have debit in their account:

Such clients would be deemed to be settled on the first Friday as mandated by SEBI.

 iii) Clients who have traded during the quarter or month but have no open positions:

In a case where the client had traded during the quarter but has no open positions as of the date of settlement, any excess credit in the ledger account will be transferred to the default bank account of the client.

 iv) Clients with open positions:

In case of clients having open positions on the settlement date i.e. first Friday, the broker can retain an amount equivalent to the following:

·        Entire pay-in obligation of funds, across segments on the settlement date plus

·        50% of the EOD cash margin requirement plus

·       225% of EOD margin reduced by 50% cash margin and value of securities (after haircut). Any credit amount over and above this calculation will have to be transferred to the bank account of the client.