Running accounts Settlement: New Sebi guidelines in motion from Friday

However, industry experts feel that with tighter rules, brokerages will need to have higher working capital and will involve operational risk of transferring large amounts

Starting Friday, all brokerages will have to transfer unused funds back to clients’ bank accounts under the new guidelines for settlement of running accounts issued by the Securities and Exchange Board of India (Sebi).
 

Under the new norms, account settlement has to be done on the first Friday of either each month or quarter, depending on client preference. This means funds lying with brokers will have to be transferred back to the customer account after considering end-of-day (EOD) obligations.
 

Sebi issued the new guidelines for running account settlement in July this year after consultations with stock exchanges, industry representatives, and