SEBI, vide its Circular dated 27 th July, 2022 made partial modification to the circular dated 16 th June, 2021 regarding guideline for settlement of running account of client’s funds / securities to ensure uniformity in settlement of running account.
SEBI said that the settlement of running account of funds of the client shall be done by the TM 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 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 for all the clients. If first Friday is a trading holiday, then such settlement shall happen on the previous trading day.
SEBI further added that, for clients, who have opted for Monthly settlement, running account shall be settled on first Friday of every month. If first Friday is a trading holiday, then such settlement shall happen on the previous trading day.
Therefore, Clause 5.1 of the circular dated 16 th June, 2021 is modified to this extent. All other provisions in the circular dated 16 th June, 2021 shall continue to remain applicable.
Link to the Circular:
https://www.sebi.gov.in/legal/circulars/jul-2022/settlement-of-running-account-of-client-s-funds-lying-with-trading-member-tm-_61222.html
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