How is the Running Account Settlement Amount 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 you have an outstanding 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 an additional 125% margin) was 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 segments across exchanges, excluding the consolidated crystallized obligation/ MTM margin. The margin liability may also include the margin collected by the Member from their clients per the risk management policy and informed to the clients.

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