SEBI has issued clarification regarding settlement of running account of client’s funds lying with Trading Member (TM) vide circular dated June 16, 2021. The settlement of running account of funds of the client shall be done by the Trading Member 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.
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.
Read the notification HERE.
*Tanvi Singh, Editorial Assistant has put this story together.
