What is the Quarterly Settlement of Funds and Securities, and when does it occur?

What is the Quarterly Settlement of Funds and Securities, and when does it occur?

  • As per SEBI’s circular The quarterly settlement of funds and securities is a SEBI-mandated process where brokers must transfer unutilized funds from a client’s trading account to their registered bank account on a quarterly basis (or monthly, if opted). This policy ensures the security of traders’ funds and securities.
  • At Jainam, the settlement happens on the first Friday of the quarter, i.e., the first Friday of January 2024, April 2024, July 2024, and so on. If the first Friday is a trading holiday, the settlement will happen on the previous trading day. Additionally, funds are transferred back to the primary bank account once a month if the client remains inactive for 30 calendar days. This ensures the security and proper reconciliation of traders’ funds and securities.