SEBI through Circular dated June 16, 2021 has issued clarification regarding settlement of running account of client’s funds lying with Trading Member (TM). The settlement of running account of funds of the client shall be done by the TM after considering the End of the day (EOD) obligation of funds as on the date of settlement across all the Exchanges, at least once within a gap of 30/90 days between two settlements of running account as per the preference of the client.
In case of outstanding trade position as on scheduled date of settlement of running account of funds, aforementioned circular also specify the process for calculating the amount of funds to be retained by TM.
It also specifies that in case of unutilized / unused credit balance in client's account for a period of 30 calendar days since the last transaction, the amount shall be returned to the client by TM within 3 working days irrespective of the date when the running account was previously settled.
Stock Exchanges shall develop online system for effective monitoring of timely settlement of running account for funds of client and to verify that excess clients’ funds are not retained by the TM as on the date of settlement of running account. The intent of the online system shall be to discourage TM from retaining excess funds of clients after settlement of running account, by considering all the client obligations across exchanges.
The provisions of this circular will be applicable with effect from 1st August 2021.
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