What is the impact of Quarterly Settlement on clients?

What is the impact of Quarterly Settlement on clients?

Effective October 1, 2022, 5paisa has laid out the following guidelines regarding the settlement of clients' running accounts for funds, which will occur on the first Friday of every quarter:

1.      Clients who have not traded for a period of 30 days:

o   Suppose a client has not executed any trades in their account for the last 30 days and has a credit balance in their ledger account. In that case, the broker must mandatorily transfer the funds from the client's ledger account to their bank account within the next 3 days, irrespective of the last settlement date or the client's preference for quarterly or monthly settlement.

2.      Clients who have traded or have open positions and a debit balance:

o   Such clients will be deemed settled on the first Friday, as mandated by SEBI.

3.      Clients who have traded during the quarter or month but have no open positions:

o   In cases where the client has traded during the quarter but has no open positions as of the settlement date, any excess credit balance in the ledger account will be transferred to the client's registered default bank account.

4.      Clients with open positions:

o   For clients with open positions on the settlement date (i.e., the first Friday), the broker can retain an amount equivalent to the following: 

a. The entire pay-in obligation of funds across segments on the settlement date

b. 50% of the end-of-day (EOD) cash margin requirement

c. 225% of the EOD margin reduced by 50% cash margin and the value of securities (after haircut).

o   Any credit amount exceeding the above calculation will have to be transferred to the client's bank account.

Please ensure that your bank account details are up-to-date to facilitate a smooth transfer process in compliance with the regulations. Keep your bank account details updated and enjoy hassle-free quarterly settlements with 5paisa. Update your information now!



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