Important Notice: Quarterly Settlement in Trading Account

We hope this NEWS finds you well. As part of our commitment to transparency and compliance with regulatory guidelines, we would like to inform you about the Quarterly Settlement in Trading Account Policy issued by SEBI, dated on ?6th April? 2024.

Key Points to Remember

• If your trading account balance is positive on the settlement day, the entire amount will be transferred to your bank account.
• In case you have an open trade position on the settlement day, the broker may retain funds based on:
• The total amount required to settle the running account for T-day and T-1 day.
• Margin liability on the settlement day across all segments, along with extra margins (up to 125% of total margin liability).
• Adjustments to the value of securities and commodities held as collateral.
• After applying the 225% margin rule, if your trading account still maintains a credit balance, the excess amount will be refunded to your bank account.
• If you have a positive credit balance and haven't conducted any transactions in the last 30 calendar days, the broker is obligated to return the credit balance to you within three business days, regardless of the last settlement date.

what is quarterly payout report ?

• ?A Quarterly Payout Report is a detailed summary provided to investors by their brokerage firm. This report is generated quarterly and serves to inform investors about the funds and securities movements in their trading accounts during that period. It typically includes the following information:
• Funds Summary: Details of funds deposited into the trading account, including any refunds or withdrawals made during the quarter.
• Securities Summary: Information on securities transactions, such as purchases, sales, and transfers, along with changes in the value of securities held in the account.
• Pay-in Requirements: Any requirements for additional funds to meet margin obligations or settlement obligations for trades conducted during the quarter.
• Margin Obligations: Summary of margin requirements as per regulatory guidelines, ensuring investors maintain sufficient funds in their accounts to cover potential losses.
• Compliance with SEBI Rules: Confirmation that the brokerage firm has adhered to SEBI regulations regarding fund transfers, margin requirements, and settlement procedures.

Benifits for quarterly payout report?

The Quarterly Payout Report provides investors with a clear summary of their trading account activities every quarter. It offers transparency, allowing investors to monitor their account performance, ensure compliance with regulations, and manage risks effectively. Additionally, the report aids in financial planning by providing insights into income, expenses, and investment activities.