What is a Retention Statement, and why is it sent?

What is a Retention Statement, and why is it sent?

A retention statement is sent by Jainam during the quarterly/monthly settlement of funds, as mandated by SEBI. As per SEBI rules, brokers must return unused funds to the client’s bank account once every quarter. However, if a client has an open position, Jainam can retain up to 225% of the margin required and provide a statement explaining the retained amount and the reason. This statement is sent in the SEBI-prescribed format.