I get SMS/Email from Exchanges about Funds and Securities Balance. What does this mean?

Modified on: Sat, 30 Jul, 2022 at 11:36 PM

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Here is the clarification. Let’s read the exact message that you would get from Exchange. It will be like the one shown below

We need to understand few points here

This balance reported is as on a particular date
It mentions your ledger balance
It also mentions the value of stocks help in Client unpaid securities account (CUSA)

The first 2 points are clear. So when you receive this message, check for the balance in your Trading ledger as on the date mentioned in the SMS.


The security balance mentioned in the SMS refers to the value of your stocks held by us in our account to cover your ledger debit, if any. This does not refer to your Demat holdings value as clearly mentioned in the SMS / Email itself. Let us understand this with an example.


"A" had a credit of Rupees 1 lakh in the ledger and bought stocks worth 2 lakhs on T day. The ledger debit at the end of T day will thus be 1 lakh –ve. On T+2nd day, when we receive the payout, we will hold stocks worth 1.5 lakhs in our CUSA (Client Unpaid Securities Account) towards the debit and release the remaining shares worth Rupees 50000 to A’s demat account. This is to ensure that A clears the debit and takes back the shares to his demat account within T+2+5 days.


It is this balance of securities held in CUSA account which you see in the SMS sent by the Exchanges. If it says 0, it implies that we as a broker, do not hold any of your stocks in our CUSA account.


Hope this clarifies you query!


Why is Funds and Securities balance sent to clients?

The message on Funds and Securities balance is sent by the exchange for information purposes. These monthly SMS, emails from NSE, BSE, and MCX with details of funds and securities, are part of SEBI's initiative for enhanced supervision.

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