What is Monthly Settlement, and how is it different from Quarterly Settlement?

 What is Monthly Settlement, and how is it different from Quarterly Settlement?

Monthly settlement is the process where your broker reconciles your trading account once every month, usually on a fixed schedule (like the last Thursday of the month). During this process, any unused funds or idle securities are returned to your bank or demat account, as per SEBI guidelines. It ensures transparency and prevents brokers from misusing client funds. to know more about, What is the Quarterly Settlement of Funds and Securities, and when it occurs.

BasisMonthly SettlementQuarterly Settlement
FrequencyEvery monthEvery 3 months
PurposeRegular fund reconciliationLess frequent, still SEBI-compliant
Impact on fundsIdle funds returned more oftenFunds stay longer in trading account