The Securities and Exchange Board of India (SEBI) on January 06, 2025, issued the notification regarding the Measure for ease of doing business - Settlement of Account of Clients who have not traded in the last 30 days.
The following has been stated namely: -
• Reference is drawn to the following which specifies the guidelines regarding settlement of running account of client’s funds by stock brokers: -
o SEBI/HO/MIRSD/DOP/P/CIR/2021/577 dated June 16, 2021
o Master Circular for Stock Brokers dated August 09, 2024.
• Clause 5.4 of the Circular dated June 16, 2021 and Clause 47.4 of the Master Circular stands modified as under: -
“For the clients having credit balance, who have not done any transaction in the 30 calendar days since the last transaction and any amount of such client’s funds is lying with member for more than such 30 calendar days, the entire credit balance of client shall be returned to the client by TM, on the upcoming settlement dates of monthly running account settlement cycle (irrespective of settlement cycle preferred by the client) as stipulated by stock exchanges.
However, if the client trades after 30 calendar days and before afore said upcoming settlement dates of monthly running account settlement cycle, the settlement of account of client shall continue to be done by the Trading member as per the preference of quarterly/monthly as indicated by the client for running account settlement”
This shall come into force on January 06, 2025.
[Notification No. SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2025/1]
