Why does Exchange sends SMS and Email about Funds & Securities?

Do you also have the same question?


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 held in Client unpaid securities pledge account (CUSPA)
 


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.

 

Let's check the 3rd point. The security balance mentioned in the SMS or email (as you would get both), if any, refers to the value of your stocks held by us in our favour to cover your ledger debit, if any. That is, if you had bought shares worth 1 lakh with a balance of 50k, then the shares will be held by us in CUSPA until you clear the debit of 50k. This is however, not possible as we do not provide extra limit to purchase shares except under Funding product. Hence, this will mostly be 0.

 

Why is Funds and Securities balance sent to clients?


The message on Funds and Securities balance is sent by the Exchange to ensure that clients have access to information from every level. These frequent 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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