Running Account Settlement


What is Running Account Authorization:?

As per the SEBI guidelines the settlement of funds in a client's trading account has to be done within one working day of payout. However the client can authorize the Broker to retain funds in his Trading Account and maintain it as Running Account. This is called Running Account Authorization.  A client can give Running Account Authorization for 30 days or 90 days.

What is the difference between Daily Settlement and  Running Account Settlement?

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.

If you have given Running Account Authorization for 90 days the settlement will be done after considering the End of the day (EOD) obligation of funds as on the date of settlement across all the Exchanges on first Friday of the calendar Quarter (i.e., Apr-Jun, Jul-Sep, Oct-Dec, Jan–Mar) for all the clients i.e. the running account of funds shall be settled on first Friday of October 2022, January 2023, April 2023, July 2023 and so on. If first Friday is a trading holiday, then such settlement shall happen on the previous trading day. 

If you have opted for Monthly settlement, running account shall be settled on first Friday of each month. If first Friday is a trading holiday, then such settlement shall happen on the previous trading day.

What happens if there is no transactions clients' account for 30 days?

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 not done any Exchange transaction in the last 30 calendar days but has an open position in derivatives segment, will the credit balance be returned to client within next three working days?

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

How is the amount to be settled, calculated?

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:

Will the settlement of funds be done as a cheque payment or NEFT transfer?

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. 

What happens if the payment under Running Account Settlement does not reach me for some reason?

The running account settlement might not reach you only due to mismatch in the bank account number or mismatch in name as registered in the bank portal. Such  funds will be returned back to us by the Bank  and the same will be communicated to you. Also, if you see an amount debited in your ledger towards payment under Running Account Settlement but do not get the funds credited to your bank account by next working day, you are requested to check if you have updated your latest bank details with Tradeplus.  Click here to check and update your Bank Details. 

Will I get an intimation when funds are settled under Auto Settlement of funds?

Yes, you will receive an email intimation and Statement of accounts along with settlement details to your registered email id.

Will the securities pledged to the Broker  be unpledged while doing the settlement?

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.


Can I cancel my Standing Instruction at any time?

When you cancel the Standing Instruction, the settlement of funds to your Bank A/c will happen on a daily basis and you will have to transfer back the money to your Trading A/c if you want to trade again. Here's what to do to cancel Standing Instruction on Running Account Authorisation:

1) Draft a letter with the specific request to cancel Standing Instruction along with your details of Broking Code

2) After signing it, send the courier to our corporate office, at the address given below:


Tradeplus Online

Navia Markets Ltd

Ganga Griha' 4th & 5 th Floor,

No.9 (old No. 6D) , Nungambakkam High Road, 

Nungambakkam , Chennai - 600 034

Once the standing instruction is cancelled, your account will be moved to daily settlement.

Still need help?

Create Ticket