Settlement of Running Account of Client’s Funds lying with Trading Member (TM)

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..... ere must be a gap of maximum 90 / 30 days (as per the choice of client viz. Quarterly / Monthly) between two settlements of running account. 2. Vide SEBI circular no. CIR/HO/MIRSD/DOP/CIR/P/2019/75 dated June 20, 2019 , settlement of running account for securities has been discontinued and therefore, SEBI circulars dated December 03, 2009 and September 26, 2016 , are now applicable for settlement of running account of client s funds only. 3. Further, SEBI, vide circular no. SEBI/HO/MIRSD/DOP/CIR/P/2020/28 dated February 25, 2020 , discontinued title transfer of securities to the demat account of TM for margin purposes and TM shall accept collateral from the clients in the form of securities only by way of margin pledge create .....

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..... ross exchanges. Computation for arriving at retention of excess client funds based on above points would be as under: Scenario Fund pay in obligation of T day T-1 day EOD/peak margin requirement 225% of the margin Securities pledged/ repledged Client fund balance Excess client funds retained A B C=225%*B D E F=E- [(C-D) +A] 1 110000 100000 225000 200000 .....

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..... ithin next three working days irrespective of the date when the running account was previously settled. 5.5. In cases where physical payment instrument (cheque or demand draft) is issued by the TM towards the settlement of running account due to failure of electronic payment instructions, the date of realization of physical instrument into client s bank account shall be considered as settlement date and not the date of issue of physical instrument. 5.6. Retention of any amount towards administrative / operational difficulties in settling the accounts of regular trading clients (active clients), shall be discontinued. 5.7. The Authorized person is not permitted to accept client s funds and securities. The TM should keep a proper che .....

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