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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Settlement of Account of Clients who have not traded in the last 30 days

06-Jan-2025 | SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2025/1

SEBI has issued a circular regarding the Settlement of Accounts of Clients who have not traded in the last 30 days, effective from 6th January 2025.

By virtue of this notification, the time for settlement of accounts of clients who have not traded in the last 30 days has been changed from 3 working days to the upcoming settlement dates of the monthly running account settlement cycle as issued by SEBI.

Accordingly, Clause 5.4 of the master circular for stock brokers has been modified, which now reads as below-

For the clients having credit balance, who have not done any transaction in the 30 calendar days since the last transaction and any amount of such client's funds is lying with the member for more than such 30 calendar days, the credit balance of the client shall be returned to the client by TM, on the upcoming settlement dates of monthly running account settlement cycle (irrespective of settlement cycle preferred by the client) as stipulated by stock exchanges.

However, if the client trades after 30 calendar days and before aforesaid upcoming settlement dates of monthly running account settlement cycle, the settlement of account of client shall continue to be done by the Trading member as per the preference of quarterly/ monthly as indicated by the client for running account settlement.

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