Running Account Settlement
Modified on: Fri, 7 Oct, 2022 at 5:17 PM
TABLE OF CONTENTS
If you have not given Running Account Authorization (either for 30 days or 90 days) at the time of opening account, the funds will be settled within one working day from the payout date. This is called Daily Settlement.
For the clients having credit balance, who have not done any transaction in the 30 calendar days since the last transaction, the credit balance shall be returned to the client, within next three working days irrespective of the date when the running account was previously settled. Further, after settlement, if such client returns to the member with fresh funds and no trades are executed during this period, the 30 calendar days for the purpose of subsequent settlement from the day funds were received instead of the last transaction date.
However, we shall settle running account of client on first Friday of the quarter or month as per as per the preference of the client irrespective of date of his/her last transaction or receipt of funds.
If the client has an open position in the derivatives segment, then the date of contract expiry or the date on which position is closed will be treated as last transaction date, for the purpose of computing 30 calendar days for returning the credit balance
If you do not have any positions, the entire amount lying as a credit in your ledger as of EOD of the first Friday of a calendar quarter will be settled under Running Account Settlement.
In case of client is having any outstanding trade position on first Friday of the Month / Quarter on which settlement of running account of funds is scheduled, funds that can be retained is calculated in the manner specified below:
i. Entire pay-in obligation of funds outstanding at the end of day on date of settlement, across all segments. ii. 50% of end of the day (EOD) margin requirement as cash margin, excluding the margin on consolidated crystallized obligation/ MTM. iii. Apart from 50% cash margin mentioned in point ii above, 225% of EOD margin (which includes additional 125% margin) reduced by 50% cash margin and the value of securities (after applying appropriate haircut) accepted as collateral from the clients by way of ‘margin pledge’ created in the Depository system for the purpose of margin and value of commodities (after applying appropriate haircut). The margin liability shall include the end of the day margin requirement in all the segments across exchanges excluding the margin on consolidated crystallized obligation/ MTM. The margin liability may also include the margin collected by the Member from their clients as per the risk management policy and informed to the clients.
Computation of retention amount based on above points would be as below:
Settlement will be done through IMPS/NEFT/RTGS transfer. The funds will be in your Primary Bank account within one working day from the Running Account Settlement payout date subject to bank working day. Client needs to ensure that you have updated your latest active Bank account in our records.
Excess securities (in the form of margin pledge/re-pledge), after adjustment of the 225% of the margin liability will not be unpledged for the purpose of periodic settlement.