As per the circular dated 27th July 2022, The Securities and Exchange Board of India has announced that there will be a slight revision in the guidelines pertaining to running account settlement, and such revision will be in effect from 1st October 2022. As a result, clients are requested to note down the following points:

1. The Quarterly settlement of the clients will be done on the first Friday of the quarter, i.e., the funds will be settled on the first Friday of October 2022, January 2023, April 2023, July 2023, and so on.

2. The above-mentioned changes apply to all clients irrespective of their trading activities.

3. For instance, let’s assume you have actively traded and utilized your entire fund balance throughout the quarter. If you have not utilized the fund balance on the 1st Friday of the subsequent quarter, the broker will have to return back the entire unutilized funds to your registered bank account.

4. For the clients with overnight carry forward position/s (F&O segment), the quarterly settlement payouts will be processed only after retaining 225% of the utilized amount. 

For more details, refer to this circular.

To comply with the above-specified guidelines, we will initiate the quarterly settlement this Friday, i.e., 7th October 2022. 

Possible scenarios for the below-specified cases, along with examples (Assuming no profits, losses, fees, or any transaction charges):

Scenario 1: No overnight position/s or intraday trades on Friday.

Client ‘A’ has ₹1,00,000 in his trading account with no overnight position/s and trades. In such a scenario, ₹1,00,000 will be transferred back to Mr. A’s bank account from his trading account. 

Scenario 2: No overnight position/s but have traded on Friday (Any segment).

Mr. A has no overnight position/s. However, he has traded intraday in the Equity and F&O segments. However, since all the intraday trades are squared off, the clear balance of ₹1,00,000 will be transferred back to Mr. A’s registered bank account. 

Scenario 3: Overnight position/s on Thursday but closed the position/s on Friday.

Mr. A had an overnight position in Nifty Oct Futures on Thursday but was closed on Friday. Since the F&O position/s were squared off, the clear balance of ₹1,00,000 will be transferred back to Mr. A’s bank account.

Scenario 4: Overnight position/s on Friday end of the day.

Mr. A took an overnight position in Bank Nifty Oct Futures on Tuesday and is still holding it on Friday end of the day. As Mr. A has an open position and has utilized 90% of the ₹1,00,000. The quarterly settlement payouts will not be processed for the unutilized fund of ₹10,000 as the broker can retain up to 225% of the utilized amount, i.e., ₹2,02,500 (90,000*225%). 

Scenario 5: Overnight position/s on Friday end of the day with a fund balance of ₹5,00,000.

Mr. A took an overnight position in Bank Nifty Oct Futures on Tuesday and is still holding it on Friday end of the day. The utilized amount is ₹1,00,000, and Mr. A has a clear balance of ₹4,00,000 as of Friday (i.e., 7th October). As the broker can retain 225% of the utilized amount, the quarterly settlement payouts will be processed for only ₹1,75,000 (4,00,000 - 2,25,000). The rest of the amount of ₹2,25,000 will remain in the client's trading account.

Scenario 6: Added funds on Thursday but did not trade on Friday.

Mr. A added ₹1,00,000 to his trading account on Thursday, 6th October but didn’t trade on Friday. As per the SEBI guidelines, the clear balance of ₹1,00,000 on Friday will be transferred back to his registered bank account since it was not utilized on the Quarterly settlement date.

For more information on the quarterly settlement payouts, refer to NSE FAQs.

We understand that transferring funds back to your trading account repeatedly can be inconvenient to some clients. To make things easier, we don’t levy any fund transfer fees. To add funds to your account at ₹0 charges, click here.

Note: Quarterly Settlement Payouts are not applicable to the clients that have opened their Demat accounts in the last quarter (i.e., 1st July to 30th September).

(edited on 06th October 2022)